by Pam Martens and Russ Martens at Wall Street on Parade
Two days after the disgraced crypto exchange, FTX, filed its bankruptcy petition in Delaware bankruptcy court, Wall Street On Parade published an article explaining why it was problematic that the Big Law firm of Sullivan & Cromwell somehow managed to become the legal advisor on the FTX bankruptcy process despite its prior engagements with FTX and Alameda Research, the hedge fund owned by Sam Bankman-Fried, the co-founder and ousted CEO of FTX. We wrote at the time:
“The General Counsel of FTX.US, the FTX exchange serving customers in the U.S., is former Sullivan & Cromwell partner, Ryne Miller, who had co-chaired the law firm’s commodities, futures and derivatives group and worked at the law firm for eight years prior to joining this speculative, upstart crypto exchange…
“Another Sullivan & Cromwell partner involved with FTX is Ken Li, who represented FTX.US last year in its acquisition of crypto derivatives firm, LedgerX, which provides trading in crypto futures, options and swaps to both retail and institutional clients.
“But of greatest significance was Sullivan & Cromwell’s representation of both Alameda Research and FTX in their joint bid to purchase the assets of bankrupt crypto exchange, Voyager Digital Holdings, last year. While Sullivan & Cromwell’s website states that it represented FTX.US in its winning bid, the filings in the court case indicate that Sullivan & Cromwell lawyers Andrew G. Dietderich, Brian D. Glueckstein, and Benjamin S. Beller were also representing Alameda Research, Bankman-Fried’s hedge fund that is alleged to have misappropriated customers’ funds from the FTX exchange….”
Now, lots of other folks are sharing Wall Street On Parade’s skepticism of what’s happening in the Delaware bankruptcy court involving the FTX bankruptcy proceedings.
Just last Friday, December 9, four major news outlets filed an emergency motion with the court asking for transparency in the proceedings. The news outlets are Bloomberg News, Dow Jones (parent of the Wall Street Journal), the New York Times and the Financial Times. The news outlet intervenors wrote as follows in their court filing:…Continue Reading