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Judge approves FTX choice of law firm as bankruptcy counsel

The judge presiding over the bankruptcy of cryptocurrency exchange FTX has approved the company’s choice of a law firm to represent it in the bankruptcy

By RANDALL CHASE
Published - Jan 20, 2023, 06:12 PM ET
Last Updated - Jun 23, 2023, 01:33 AM EDT

DOVER, Del. (AP) — The judge presiding over the bankruptcy of cryptocurrency exchange FTX has approved the company’s choice of a law firm representing it in the bankruptcy, despite concerns about potential conflicts of interest.

Judge John Dorsey on Friday granted a motion by FTX for the Sullivan & Cromwell law firm to serve as debtor’s counsel.

The ruling came after a Sullivan & Cromwell partner filed additional disclosures this week about the firm’s work for FTX entities and FTX founder Sam Bankman-Fried before the November bankruptcy filings. Those disclosures were made in response to concerns raised by the U.S. Trustee, which serves as a government watchdog in Chapter 11 reorganizations.

According to declarations filed by attorney Andrew Dietderich, the firm was paid millions of dollars for work on behalf of FTX starting in July 2021. That does not include bankruptcy-related retainers totaling $12 million. Of that amount, $3 million was paid to Sullivan & Cromwell for previous work.

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