Former FTX chief lawyer claims US legal counsel channeled business to S&C
19 Jan, 2023
By Luke Huigsloot
The former chief regulatory officer of FTX has supported a motion that would stop FTX from using Sullivan & Cromwell LLC as its lead bankruptcy counsel.
A former FTX chief lawyer has accused the company's US 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.
The filing was a declaration in support of an FTX creditor’s objection to FTX’s plan to continue using S&C as its lawyers throughout its bankruptcy case.
In the declaration, Friedberg alleges that FTX.US lead counsel Ryne Miller, a former partner at S&C channeled business towards his former law firm across numerous cases, with Friedberg stating:
“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.”
Friedberg claims in the filing that he reminded Miller that his “allegiance” was to the debtor and not to S&C which he suggested “continued to be a problem throughout his work” at FTX.
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