- FTX clients have filed a class action lawsuit against the firm Sullivan and Cromwell.
- The creditors allege that the lawyers were involved in the company’s fraudulent schemes.
- The amount of the claims equals the fees the firm received from FTX for its services.
Creditors of failed cryptocurrency exchange FTX have filed a class action lawsuit against law firm Sullivan and Cromwell (S&C). It is overseeing the company’s bankruptcy proceedings.
Clients believe that the lawyers are involved in fraudulent schemes, FTX. The claimants cite Sullivan and Cromwell’s connection to the exchange, which was formed before its bankruptcy. In their view, the firm cannot be considered impartial and is partly responsible for its collapse.
The class action lawsuit states that S&C acted as an outside consultant to FTX for 16 months. During this time, the firm received from the exchange $ 8.5 million. In addition, ex-employee of Sullivan and Cromwell Ryan Miller in 2021 moved from the company to FTX. He held the position of general counsel.
The applicants note that with the participation of Miller, the exchange concluded 20 transactions. Among them are the acquisition of cryptolender Voyager Digital’s assets and the purchase of LedgerX.
Miller was also aware of the transfer of FTX customer funds to the accounts of the firm Alameda Research, the lawsuit says. Creditors allege he shared that information with Sullivan and Cromwell representatives.
The court documents state that during the supervision of the bankruptcy proceedings of FTX, the law firm received more than $180 million. The applicants demand to return the funds transferred to the company during these processes.
Recall, we wrote that the U.S. Department of Justice has brought charges against persons involved in the hacking of FTX for more than $ 400 million.
