FTX’s law firm is back in the cross-hairs as Bankman-Fried kicks off defense By Reuters

By Andrew Godsward

(Reuters) – Indicted FTX founder Sam Bankman Fried has renewed his attacks on the law firm of the bankrupt cryptocurrency exchange while defending a slew of fraud, money laundering and campaign finance charges.

Bankman-Fried late Monday asked a judge to appoint FTX’s current leadership and stock exchange attorney at law firm Sullivan & Cromwell as part of the “prosecution team” in the criminal case against him.

FTX and Sullivan & Cromwell provided such extensive cooperation to the government that prosecutors have “effectively authorized the company to assist in the prosecution,” Bankman-Fred said. The 31-year-old former CEO is fighting accusations that he stole billions of dollars in client money to plug losses at his Alameda Research hedge fund.

Sullivan & Cromwell, a prominent Wall Street law firm of about 900 attorneys, represented FTX in transactional and regulatory matters before its collapse last year. The company won court approval in January to advise FTX on its bankruptcy, overcoming objections from some FTX creditors and US lawmakers that its previous work created a conflict of interest.

Bankman-Fried publicly attacked Sullivan & Cromwell after the stock market crash, claiming that the company rushed FTX into bankruptcy and downplayed its previous stock exchange work. The company denied these allegations.

Monday’s filing in Manhattan federal court indicated that the one-time crypto billionaire will target Sullivan, Cromwell and current FTX CEO John Ray in his criminal defense as well.

Spokespeople for Sullivan, Cromwell and FTX did not immediately respond to requests for comment. A spokesperson for the US Attorney’s Office in Manhattan declined to comment.

FTX and its Sullivan & Cromwell team have accused Bankman-Fried of presiding over a shocking lack of internal controls for the companies and said their cooperation with the government was crucial to securing a speedy indictment against Bankman-Fried and a guilty plea from other FTX executives.

If the judge grants Bankman-Fried’s request to appoint them as part of the prosecution, they will be required to turn over any documents relevant to the case, including evidence likely to support Bankman-Fried’s defence. Usually only prosecutors face this obligation.

In a filing Monday, Bankman-Fried’s defense team said Ray and FTX’s bankruptcy attorneys acted as “public mouthpieces” for the prosecution and delivered “handpicked” information incriminating Bankman-Fried.