Objections to the appointment of Sullivan & Cromwell as a debtor for FTX -
Objections to the appointment of Sullivan & Cromwell as a debtor for FTX -
On Friday, the insolvency judge John Dorsey approved the appointment of the law firm Sullivan & Cromwell (S&C) as a debtor lawyer for FTX, despite an objection by Daniel Friedberg, a former US compliance officer from FTX. During a zoom presentation, Friedberg claimed that there was a conflict of interest between former and current FTX managers and the General Counsel from FTX Us, since Ryne Miller once worked for S&C. Judge Dorsey, however, was not deterred by Friedberg's 17-page objection and appointed S&C with the determination that "there is no evidence of an actual conflict".
The FTX bankruptcy raises questions about conflicts of interest and strange decisions
The day before approved insolvency judge John Dorsey Sullivan & Cromwell (S&C) to represent the debtor as legal advisors, james "metalawman" murphy published a twitter-thread Target = "_ blank" href = "https://twitter.com/metalawman/status/161610257483869312?s=20&t=zdmuuxhwbcqcym4oy-lvlg" Rel = "noopener"> that it was strange that S&C is likely to be selected for the FTX representation would. "Something is wrong with the FTX bankruptcy," insisted Murphy in his post. Murphy, a lawyer who specializes in meta-verse, web3 and digital asset issues, questioned the participation of John J. Ray III The new ftx-CEO and chief resructure Officer, there.
The lawyer Murphy points out that Ray, when he worked with Enron as Chief Restructuring Officer, did an excellent job by having aggressively re -claims in favor of Enron's creditors. But murphy said that ray behaves very differently than the hard negotiating CEO, as he was known to Enron, and questioned this change in the attitude. For example, the Meta-Verse lawyer explained that Ray had never suggested a moment to restructure Enron for a moment that one of the most important external law firms from Enron should act as debtor lawyer.
"Inexploited, Mr. Ray is now supporting the step of S&C to act as a debtor lawyer," said Murphy noted . The lawyer continued that this was the case, even though S&C "20 engagements for FTX processed in just 16 months", "paid $ 8.5 million of fees" and "representing key figures". [Sam Bankman-Fried] and [Nishad Singh] personally. " Murphy noticed that Ray at Enron "pursued an aggressive claims against ENRON's external law firms". The lawyer continued
Vinson & Elkins paid $ 30 million for the comparison and Andrews Kurth paid $ 18.5 million. According to an independent report, these companies did not respond to warning signals that indicated possible misconduct. murphy also said that the ultimate irony is there, that the enormous fees are paid for by the victims of the FTX fraud-the customer. "My prediction: The uniform front of Mr. Ray, the official creditor committee and S&C will prevail, and the judge will appoint the debtor lawyer of Sullivan & Cromwell ... this is not normal," concluded Murphy. During the hearing the next day, Daniel Friedberg, a former FTX Us Compliance Officer, objected Insolvency judge. In the file, the former compliance officer from FTX Us said that Ryne Miller, General Counsel from FTX Us, it was once with S&C employed . "Lord Miller informed me that it was very important to him to direct many shops to S&C, because after his time he wanted to return to the debtors as a partner," explains Friedberg's complaint. Despite the objection, insolvency judge Dorsey told the judges that "there is no evidence of an actual conflict", and added that they are "hearing, stages, allusions, speculations, rumors and certainly not something that I would use as evidence". After S&C was appointed debtor lawyer, James "Metalawman" Murphy added his mustard to this decision. "As expected, the judge Sullivan & Cromwell approves as a debtor lawyer. The judge says that after the files available to him, he has no concerns about S&C interest conflicts", Murphy wrote . "Any uncertainty about this decision was eliminated when the US faithower changed its position in favor of the appointment of S&C." On the same day the US public prosecutor's office In assets of the felled FTX co-founder Bankman-Fried. What do you think of the appointment of Sullivan & Cromwell as the debtor attorney for FTX and the allegations of conflicts of interest, which were raised by Daniel Friedberg, the former US compliance officer of FTX, and James "Metalawman" Murphy? Share your thoughts in the comments below. Bedy verification : Shutterstock, Pixabay, Wikicommons 