Opposition to Appointment of Sullivan & Cromwell as FTX Bankruptcy Counsel
What's this case about?
The collapse of the FTX cryptocurrency empire has spawned a variety of legal actions. One such action is the consolidated bankruptcy proceeding before the Bankruptcy Court for the District of Delaware. This proceeding concerns more than 130 FTX-related business entities. The case is FTX Trading, Ltd., Case No. 22-11068 (Bankr. D. Del.).
You can access the docket and other information about FTX Trading here.
What is The Hoda Law Firm's involvement?
Sullivan & Cromwell, one of the world's most prestigious law firms, applied to be appointed bankruptcy counsel to the FTX entities. It was widely known, however, that Sullivan & Cromwell had performed millions of dollars of legal work for the FTX entities before their bankruptcy -- i.e., while the FTX fraud was ongoing -- and that former Sullivan & Cromwell lawyers served as General Counsel to FTX US and FTX Ventures.
On behalf of several of our clients, The Hoda Law Firm lodged an objection to the appointment of Sullivan & Cromwell as the FTX entities' counsel. To download the Amended Objection, click here.
The hearing on Sullivan & Cromwell's appointment took place on January 20, 2023, at 10 a.m. (EST). At this hearing, the Judge heard evidence and arguments concerning Sullivan & Cromwell's activities and appointment. Ultimately the judge overruled the objection to Sullivan & Cromwell's appointment. To hear an audio recording of the hearing, click here.
As of June 2023, Sullivan & Cromwell has charged the FTX bankruptcy estate roughly $70 million for its services.
Practice area(s): Bankruptcy / Debt, Civil Litigation
Court: Bankruptcy Court for the District of Delaware