FTX Examiner Clears S&C, Questions Fenwick's Knowledge of Fraud

A court-appointed examiner cleared Sullivan & Cromwell of allegations that the law firm was aware of the fraud as it handled 20 matters for FTX before its bankruptcy filing.

May 24, 2024 at 02:49 PM

4 minute read

Cryptocurrency

By Dan Roe
Reporter

The original version of this story was published on The American Lawyer

What You Need to Know

A court-appointed examiner in the bankruptcy of FTX cleared Sullivan & Cromwell of allegations by creditors and whistleblowers that the law firm knew of the ongoing fraud at the cryptocurrency exchange.
Sullivan & Cromwell handled 20 matters for FTX before the company filed for bankruptcy in November 2022.
The examiner also found that Fenwick & West was closely involved with "core aspects of FTX Group's improper operations and management."

Sullivan & Cromwell was not aware of the ongoing fraud at FTX while the law firm represented the cryptocurrency exchange in 20 matters before becoming its debtor counsel, a court-appointed examiner stated in a report Thursday.

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