• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

2023-03-31

XRP Perpetual Futures Open Interest skyrockets to $610 million

2023-03-31

CNBC’s Jim Cramer calls Binance “way too sketchy”

2023-03-31
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Siemens and MIT Tech Review Probe ‘The Emergent Industrial Metaverse’

    2023-03-30

    Disney Metaverse Division Reportedly Scrapped

    2023-03-28

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

    2023-03-31

    XRP Perpetual Futures Open Interest skyrockets to $610 million

    2023-03-31

    CNBC’s Jim Cramer calls Binance “way too sketchy”

    2023-03-31

    Bitcoin reclaims $28k despite potential regulatory woes from Binance lawsuit

    2023-03-31

    Binance daily withdrawals double as users report problems off-ramping

    2023-03-31
  • Learn

    Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

    2023-03-30

    Next Cryptocurrency to Explode 2023

    2023-03-30

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17
  • Market Cap
CryptoNewsMetaverse
Home»Regulation»Former FTX chief lawyer claims US legal counsel channeled business to S&C
Regulation

Former FTX chief lawyer claims US legal counsel channeled business to S&C

2023-01-20No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

A former chief lawyer for FTX has accused the company’s U.S. general counsel of channeling business to Sullivan & Cromwell (S&C), the firm currently serving FTX as bankruptcy counsel.

Daniel Friedberg, who was the chief regulatory officer of FTX until he resigned on Nov. 8, made the allegations as part of a Jan 19. court filing.

In the declaration, Friedberg alleges that FTX US lead counsel Ryne Miller, who is a former partner at S&C, channeled business towards his former law firm across numerous cases. Friedberg stated:

“Mr. Miller informed me that it was very important for him personally to channel a lot of business to S&C as he wanted to return there as a partner after his stint at the Debtors.”

Lawyer and former chief of the Securities and Exchange Commission Office of Internet Enforcement, John Reed Stark, highlighted the magnitude of the allegation in a Jan. 20 tweet. 

Tomorrow is a hearing before FTX Bankruptcy Judge John Dorsey re the engagement of Sullivan & Cromwell. If this declaration is true, I cannot imagine any circumstance where the FTX Trustee would be allowed to engage Sullivan & Cromwell for any purpose.https://t.co/5vPC4pYwhP https://t.co/lxPJ8pAQUq

— John Reed Stark (@JohnReedStark) January 20, 2023

Friedberg claims in the filing that he reminded Miller that his “allegiance” was to the debtor and not to S&C, but this issue “continued to be a problem throughout his work” at FTX.

Friedberg alleged that after Miller’s hiring in early 2020, Miller asked whether he could hire his former law firm, to which Friedberg replied by saying it was Miller job “to only hire the best outside counsel for the job.”

Miller ended up engaging S&C to be primary counsel for FTX US, FTX Derivatives (formerly LedgerX), and Sam Bankman-Fried’s holding company Emergent, Friedberg wrote.

Friedberg also accused Miller of having earmarked $200 million of LedgerX funds for S&C to pay its legal fees, saying: “there was over $200 million cash in LedgerX and that he was going to send these funds to S&C, and that bankruptcy legal costs were therefore not a problem.”

Decision incoming

While the filing is simply a declaration in support of an FTX creditors objection to the retention of FTX lawyers Sullivan & Cromwell LLP, it makes a number of accusations that were previously undisclosed.

Well, I just finished reading the Declaration of Daniel Friedberg.

It is fair to say that this is one of the more shocking sworn statements I have read in a good long while.

If half of what Mr. Friedberg says is true, he has just blown the top off of this bankruptcy case.

— MetaLawMan (@MetaLawMan) January 19, 2023

Friedberg apologized for filing his declaration at the last moment, saying that he had no time due to the filing of the Dietderich Supplemental Declaration. Andrew Dietderich is a partner at S&C who filed the declaration in support of FTX’s motion to retain S&C as their lead counsel.

Related: FTX CEO says he is exploring rebooting the exchange: Report

Friedberg finishes his declaration by affirming that he would “testify competently to the facts set out in this Declaration” if called upon to testify.

A hearing is scheduled to occur at the bankruptcy court on Jan. 20, where the judge will hear from various parties involved before deciding whether FTX will be able to retain S&C as its lead counsel. 

Cointelegraph has reached out to FTX for comment. 

Source link

Business channeled Chief claims counsel FTX lawyer Legal
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

2023-03-31

XRP Perpetual Futures Open Interest skyrockets to $610 million

2023-03-31

CNBC’s Jim Cramer calls Binance “way too sketchy”

2023-03-31

Bitcoin reclaims $28k despite potential regulatory woes from Binance lawsuit

2023-03-31
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Ethereum [ETH] and the question of whether we can expect March all over again

2022-08-01

Shiba Inu (SHIB) Jumps 7% This Week, Here’s Why It Could Go Higher

2022-04-16

Trader Known for Calling 2022 Bitcoin Crash Says Cardano (ADA) and Mid-Cap Altcoin Primed for Another Leg Down

2022-07-12

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

2023-03-31

XRP Perpetual Futures Open Interest skyrockets to $610 million

2023-03-31

CNBC’s Jim Cramer calls Binance “way too sketchy”

2023-03-31
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$28,492.001.31%
  • ethereumEthereum(ETH)$1,824.361.68%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.14%
  • binancecoinBNB(BNB)$316.74-0.06%
  • usd-coinUSD Coin(USDC)$1.000.01%
  • rippleXRP(XRP)$0.540.61%
  • cardanoCardano(ADA)$0.4038877.04%
  • Lido Staked EtherLido Staked Ether(STETH)$1,819.341.69%
  • dogecoinDogecoin(DOGE)$0.0768162.54%