US senators accuse FTX Group legal adviser Sullivan & Cromwell of fraud

Four US senators have asked the bankruptcy judge overseeing the FTX case to appoint an impartial expert to assess the role of law firm Sullivan & Cromwell. Senators John Hickenlooper, Thom Tillis, Elizabeth Warren, and Cynthia Lummis have asked Delaware County Bankruptcy Judge John Dorsey to uphold a motion to appoint an independent expert, to conduct an objective investigation of the activities of the law firm Sullivan & Cromwell. According to the senators, it is necessary to give a legal assessment of the role of Sullivan & Cromwell, which provided the FTX Group with legal support, but did not prevent criminal operations. The Senators allege that Sullivan & Cromwell, which is helping the new FTX administration identify past problems, is a stakeholder, resulting in a conflict of interest. “Given years of legal work with FTX, Sullivan & Cromwell may well be held liable for damages to the company's victims.. Simply put, the firm is not prepared to disclose the truthful information necessary to provide confidence in any investigation or findings,” the letter says. They add that Sullivan & Cromwell's real role in FTX operations remains unanswered.. In particular, the actual extent of Sullivan & Cromwell's representation in relation to FTX with counterparties and users is unknown.. It is also necessary to establish to what extent the company's lawyers had questions to the previous administration of the FTX Group on suspicion of fraud or lack of proper legal control. Earlier in federal court in Manhattan, another hearing took place in the case of former head of FTX Sam Bankman-Fried, who denied prosecutors' charges against him in connection with the collapse of the exchange.