FTX Examiner Files Motion To Investigate Sullivan & Cromwell Over SBF Ties
Robert Cleary, the independent examiner appointed to handle investigations related to FTX’s bankruptcy estate, filed a motion on Monday to further probe Sullivan & Cromwell’s (S&C) working relationship with Sam Bankman-Fried (SBF) as well as “holes in the balance sheet” of FTX.US.
Sullivan & Cromwell’s management of the bankruptcy estate has long been scrutinized, given the international law firm handled a number of transactions for the doomed crypto exchange prior to its collapse.
Cleary is seeking to investigate whether Sullivan & Cromwell knew about misconduct at the exchange—particularly allegations that attorneys for the firm advised Bankman-Fried on purchasing over 55 million Robinhood shares—and if so, to what extent.
“Investigation into this transaction would be important to help determine whether there was a potentially disqualifying conflict the Court should have been aware of when ruling on S&C’s retention application,” Monday’s filing read.
Examiner has filed a motion to conduct further investigations into Sullivan and Cromwell
1) S&C representation of SBF to purchase Robinhood
2) Sale and claims against former shareholders of Ledger X
3) FTX US balance sheet
In Phase I Examiner did not clear S&C of wrongdoing… pic.twitter.com/jRnLKqcUoX
— Sunil (FTX Creditor Champion) (@sunil_trades) June 11, 2024
The motion further claims Cleary’s prob would seek to uncover whether Sullivan & Cromwell “advised on, possessed or gained knowledge of, or had been made aware of critical facts” related to FTX’s massive crypto fraud scheme.
Bankman-Fried and FTX co-founder Gary Wang originally purchased the shares in question through Emergent Fidelity Technologies in early 2023, though Robinhood has since bought back the stake in its
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