Posted 2/17/2024, 7:25:07 PM
FTX Investors Sue Sullivan & Cromwell, Allege Law Firm Actively Aided in Fraud Schemes Before Collapse
- FTX investors sued Sullivan & Cromwell, accusing the law firm of aiding illicit schemes and fraud before FTX's collapse
- The lawsuit alleges the firm's legal work went beyond typical services and actively participated in misleading activities
- This adds scrutiny to the firm that acknowledged working on 20 FTX legal matters in the 16 months before its 2022 implosion
- The lawsuit makes Sullivan & Cromwell the second law firm to face litigation over allegedly aiding the FTX fraud
- The firm's restructuring group has served as FTX’s bankruptcy counsel, a job for which it has already billed at least $150 million