Lawyers for FTX have accused Sam Bankman-Fried of trying to disrupt the bankruptcy process of his crypto empire through a “Twitter attack”.
In recent weeks, Bankman-Fried in a series of tweets and blog posts accused Sullivan & Cromwell, the law firm representing FTX in its 11 case proceedings, of putting her under pressure. companies rush to bankruptcy, including the US arm of FTX, which. the claims were once billions of solvent. The company has denied those claims.
James Bromley, a partner at Sullivan and Cromwell, said in court Friday that the firm is “fighting a ghost” in trying to address Bankman-Fried’s public complaints about the responsibility of the company to represent FTX in bankruptcy without being able to question him in court.
“One of the things that debtors are dealing with on a regular basis is being attacked by Twitter,” he said.
The comments came at a hearing where the bankruptcy court considered a motion by two FTX shareholders who sought to block Sullivan’s appointment because of what they said were conflicts of interest arising from The company’s past work for the crypto sector.
The judge ultimately denied the motion. “There is no evidence of any real conflict here,” said judge John Dorsey.
The decision paves the way for Sullivan to receive six million dollars in fees on behalf of FTX as it seeks to repay data holders. Dorsey said FTX hired other law firms that could be closed if disputes arose.
The court, and Bromley’s comments, point to the high level of FTX and social will complicate efforts to reorganize the crypto exchange and return the money owed to millions of creditors.
Another former FTX insider, his top lawyer Dan Friedberg, on Thursday made new allegations against Sullivan over the last-minute conflict of interest filings. the court. The judge described the file as full of “rumors, speculations and rumours” and “is not something I will allow to be accepted as evidence”.
Earlier this week, Sullivan filed several pages of additional information on nearly $10 million worth of legal work done for the Bankman-Fried companies before they were placed in bankruptcy protection in last year. Two of Sullivan’s former attorneys also held senior legal positions at FTX.
Bromley on Friday said that the company should have been better from the beginning in the disclosure of many of its connections in the past in the crypto sector failure. “Looking back, Your Honor, we should have gone ahead with the original commitment,” he said in court.
He also said Bankman-Fried, who has pleaded not guilty to US fraud charges, and other executives who “brought the company to its knees” were concerned about the information Sullivan was giving to prosecutors. and regulations.
“They can throw stones at the debtors’ lawyers who are giving information to the government’s lawyers,” he said.
The US Department of Justice objected to the company’s initial disclosure of its work for FTX, and pushed for more information. Prosecutors said Friday they were satisfied with the additional information provided by Sullivan.
Sullivan and Bankman-Fried declined to comment.