FTX, a cryptocurrency exchange, has defended its decision to retain law firm Sullivan & Cromwell (S&C) as an advisor, in response to objections raised about the move.
In a filing on January 17th, FTX stated that S&C’s role at the bankrupt exchange was “critical,” citing how its information sharing with U.S. prosecutors and regulators led to the charge and arrest of Sam Bankman-Fried (SBF) and his associates.
The filing also stated that claims that S&C’s previous advisory role with the exchange could lead to a potential conflict of interest were false, as the law firm had conducted a conflicts check procedure that showed it was a “disinterested person” in the case.
FTX CEO John Ray III and the Official Committee of Unsecured Creditors also submitted separate filings on January 17th in support of retaining Sullivan & Cromwell.
Ray stated that the S&C team was essential in bringing order to a chaotic situation, and that he had also employed a new law firm to serve as counsel on matters to which S&C might be conflicted.
