U.S. Trustee Objects FTX’s Choice Of Lawyers
A trustee in the United States has objected to FTX’s hiring of the New York law firm Sullivan and Cromwell.
The filing, dated Jan. 13, by U.S. Trustee Andrew Vara, claimed potential conflicts of interest due to S&C’s previous connections with the defunct crypto exchange.
“S&C’s disclosures as filed are entirely insufficient to assess whether S&C meets the Bankruptcy Code’s conflict-free and disinterestedness standards,” it stated.
According to the filing, FTX’s general counsel Ryne Miller spent eight years at S&C.
“The S&C Application is virtually silent in terms of both its connections to the Debtors and the work it performed for the Debtors,” Vara said.
It was also noted that the S&C application to represent FTX does not provide any details about the types of services S&C previously provided to the exchange, including while it was in the process of collapsing.
Vara, as a U.S. trustee, is part of the Department of Justice, which oversees bankruptcy proceedings in the United States and has a duty to ensure that bankrupt entities are not engaging in activities that would be detrimental to creditors or others with an interest in the case.
Vara had previously objected to the planned sale of its subsidiaries LedgerX, FTX Europe, and FTX Japan.
(With inputs from Shikha Singh)
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