Senators criticized a law firm’s role in FTX’s bankruptcy case and said the situation should be overseen.
US Senators Cynthia Lummis, Elizabeth Warren, Thom Tilli and John Hickenlooper emphasized in a letter to US District Attorney General John Dorsey that law firm Sullivan & Cromwell has been advising the collapsing cryptocurrency exchange for years.
Senators Target Law Firm
In a statement on the subject, US Senators said:
“Given their role in drafting financial deals, risk management, compliance practices and corporate controls, it is perfectly reasonable to be concerned about Sullivan & Cromwell’s approach and impartiality to any investigation, as the law firm has been at the center of major financial scandals.”
Sullivan & Cromwell continues to represent FTX during the bankruptcy process. According to Bloomberg, the firm received $8.5 million from its non-bankruptcy operations from July 2021 to November 2022.
U.S. Senators believe the law firm should also be investigated.
“Given its long-standing legal work for FTX, the company may be able to assume some degree of harm done to victims. To put it bluntly, the firm is not in a position to reveal the information necessary to build any confidence.”
Sullivan & Cromwell has yet to make a statement on the subject.
