Judge slams senators’ letter against FTX lawyers as ‘inappropriate’
The judge handling FTX’s bankruptcy has reportedly slammed a joint letter from four United States senators calling for an independent examiner in the case.
As reported by Cointelegraph, the senators sent a letter on Jan. 9 highlighting concerns about the ties between FTX and Sullivan & Cromwell LLP, which as the lead law firm in the bankruptcy proceedings would be tasked with scrutinizing alleged past wrongdoing by the exchange.
However, during a Jan. 11 hearing, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware called the letter “inappropriate ex parte communication” thathe would not take into account in his decision.
“I will make my decisions on the matters based only upon admissible evidence and the arguments presented in open court,” he said during the hearing, according to a Law360 report on Jan. 11.
Ex parte refers to an action taken by one party in a legal proceeding without participation from the opposing party.
The letter was sent to Judge Dorsey on Jan. 9 by a bipartisan group of senators — John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis — questioning the appointment of Sullivan & Cromwell and supporting a motion for the appointment of an independent examiner.
The motion was filed by the U.S. Trustee on Dec. 12.
In the letter, the senators noted that the law firm has previously provided FTX with legal advice and that members of the law firm had left to take positions at FTX, prompting one of the senators to suggest there could be a conflict of interest.
Get this: FTX’s legal advisors *pre-collapse* want to be appointed to oversee investigations INTO the collapse.I’m no legal expert, but that sounds like a conflict of interest. With @SenThomTillis @SenWarren
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