FTX creditors say Sullivan & Cromwell (S&C), the law firm overseeing FTX’s bankruptcy case, financially benefitted from the crimes committed by FTX, and they are suing for damages. In their filing, they allege various charges, including civil conspiracy, aiding and abetting fraud, and aiding and abetting fiduciary breaches. 

The class action says that S&C was FTX’s counsel in up to 20 transactions, including FTX’s acquisition of LedgerX and its bid for Voyager Digital assets. It also says Sam Bankman-Fried, the former CEO of FTX, regularly used S&C offices in New York. 

According to the complaint, “While customers of FTX, Class Members, lost everything, S&C was able to gain millions from the FTX fraud. S&C served as primary legal counsel to FTX for the 16 months preceding FTX’s collapse, during which time S&C billed around $8.5 million in fees.” 

The lawsuit notes Ryne Miller, FTX’s General Counsel in 2021, was key to S&C’s role as FTX’s outside counsel. He previously worked at S&C. According to the lawsuit, Miller knew that FTX could funnel customer funds to Alameda and told this to other people at S&C.

This is not the first time the issue of a possible conflict of interest has been raised. In January 2023, creditors objected to S&C’s involvement in FTX’s bankruptcy, but the judge approved it. Some U.S. senators also wrote to the judge calling for an independent examiner, but the request was denied. 


They allege S&C benefitted from FTX’s fraud.  


Tue Feb 20 2024

FTX Creditors File Class Action Against Bankruptcy Law Firm

Have the FTX Hackers Been Caught?

Coindesk: Proof Group Looks to Relaunch FTX

Sam Bankman-Fried Found Guilty

Sam Bankman-Fried Slated to Testify at His Trial

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Coindesk: Proof Group Looks to Relaunch FTX

Tue Feb 20 2024 FTX Creditors File Class Action Against Bankruptcy Law Firm

Have the FTX Hackers Been Caught?

Coindesk: Proof Group Looks to Relaunch FTX

Sam Bankman-Fried Found Guilty

Sam Bankman-Fried Slated to Testify at His Trial

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Coindesk: Proof Group Looks to Relaunch FTX

Tue Feb 20 2024

FTX Creditors File Class Action Against Bankruptcy Law Firm