{"id":540755,"date":"2023-01-19T05:03:10","date_gmt":"2023-01-19T02:03:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-ceo-fights-to-keep-lawyers-as-calls-for-removal-intensify\/"},"modified":"2023-01-19T05:03:10","modified_gmt":"2023-01-19T02:03:10","slug":"ftx-ceo-fights-to-keep-lawyers-as-calls-for-removal-intensify","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-ceo-fights-to-keep-lawyers-as-calls-for-removal-intensify\/","title":{"rendered":"# FTX CEO fights to keep lawyers as calls for removal intensify"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a9a83bdbc7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a9a83bdbc7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-ceo-fights-to-keep-lawyers-as-calls-for-removal-intensify\/#%E2%80%9D_FTX_CEO_fights_to_keep_lawyers_as_calls_for_removal_intensify_%E2%80%9C\" >&#8221; FTX CEO fights to keep lawyers as calls for removal intensify &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_CEO_fights_to_keep_lawyers_as_calls_for_removal_intensify_%E2%80%9C\"><\/span>&#8221; FTX CEO fights to keep lawyers as calls for removal intensify &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvMjhhNTQ2MWYtZDg2NS00Njc5LWIyNDItY2VlMTQyYThiNDA2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>The CEO of crypto exchange FTX has rejected calls for its law firm to be replaced as lead counsel in its bankruptcy case.\u00a0<\/p>\n<p>John J. Ray III, who was <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed as the new FTX CEO on Nov. 11, filed a court <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQzODYzMg==&amp;id2=-1\">motion<\/a> on Jan. 17 arguing that Sullivan &amp; Cromwell has been integral in taking control over the \u201cdumpster fire\u201d that was handed to him. <\/p>\n<p>Ray suggested that retaining their services is in the best interest of FTX creditors, arguing:<\/p>\n<blockquote><p>\u201cThe advisors are not the villains in these cases. The villains are being pursued by the appropriate criminal authorities largely as a result of the information and support they are\u00a0receiving at my direction from the Debtors\u2019 advisors.\u201d<\/p><\/blockquote>\n<p>U.S. Trustee Andrew R. Vara had filed an\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQzODMzMw==&amp;id2=-1\">objection<\/a>\u00a0to the retention of the law firm on Jan. 14, citing two separate issues.<\/p>\n<p>He claimed that Sullivan &amp; Cromwell had failed to sufficiently disclose its connections and prior work for FTX. He also pointed out that based on publicly available knowledge, a former partner of the law firm became a counsel to FTX 14 months prior to the bankruptcy filing.<\/p>\n<p>Meanwhile, lawyer James A. Murphy, who goes by the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> handle MetaLawMan, suggested on Jan. 14 that the prior work it had done for FTX was not the law firm\u2019s only conflict of interest in the case.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">At the same time that Sullivan &amp; Cromwell lawyers have had unrestricted access to all internal data about the value of FTX&#8217;s assets and liabilities&#8230;<\/p>\n<p>Apollo Global has (reportedly) been quietly offering to buy up creditor claims from FTX customers for pennies on the dollar.<\/p>\n<p>\u2014 MetaLawMan (@MetaLawMan) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MetaLawMan\/status\/1614001947572600832?ref_src=twsrc%5Etfw\">January 13, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He claimed that private equity firm Apollo Global has been buying up creditor claims from FTX customers for a fraction of their value. Murphy notes that Apollo\u2019s chairman, Jay Clayton, is also employed by Sullivan &amp; Cromwell, which has access to sensitive financial information.<\/p>\n<p>The U.S. Trustee also believed that the current application to retain Sullivan &amp; Cromwell was flawed, as they would \u201cusurp\u201d an independent examiner\u2019s work and the parties would be duplicating their services at the expense of the FTX estate.<\/p>\n<p>The Trustee had first called for the appointment of an independent examiner on Dec. 1, pointing to a part of the bankruptcy code that\u00a0mandates the appointment of an examiner when certain debts exceed $5 million.<\/p>\n<p><strong>Related: <\/strong><strong><em>SBF says Sullivan &amp; Cromwell contradicted itself with insolvency claims<\/em><\/strong><\/p>\n<p>On Jan. 10, a bipartisan group of four U.S. representatives sent a letter to Delaware bankruptcy judge\u00a0John Dorsey, requesting that he approve the motion to hire an independent examiner and expressed their disbelief that the law firm could be labeled as a \u201cdisinterested\u201d party. <\/p>\n<p>Dorsey, however, labeled the letter as \u201cinappropriate ex parte communication,\u201d and said he would not take it into account when he decides whether to appoint an independent examiner or approve the retention of Sullivan &amp; Cromwell.<\/p>\n<p>But Dorsey is set to consider the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQzNzQ4Ng==&amp;id2=-1\">objection<\/a> of an FTX creditor filed on Jan. 10 when deciding whether Sullivan &amp; Cromwell should be retained, with the creditor also suggesting that the law firm&#8217;s previous work for FTX constitutes a conflict of interest.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-ceo-fights-to-keep-lawyers-as-calls-for-removal-intensify\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX CEO fights to keep lawyers as calls for removal intensify &#8220; The CEO of crypto exchange FTX has rejected calls for its law firm to be replaced as lead counsel in its bankruptcy case.\u00a0 John J. Ray III, who was appointed as the new FTX CEO on Nov. 11, filed a court motion&#8230;<\/p>\n","protected":false},"author":1,"featured_media":540756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/28a5461f-d865-4679-b242-cee142a8b406.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[129187,74860,135234,4978,71433,55229,70934],"class_list":["post-540755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cefi","tag-cryptocurrency-exchange","tag-ftx","tag-bankruptcy","tag-court","tag-law","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=540755"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/540756"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=540755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=540755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=540755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}