Sullivan & Cromwell Approved as Debtors’ Counsel in FTX Case

Bankruptcy Judge Approves Counsel Bid

A significant development in the FTX bankruptcy case occurred when a judge approved Sullivan & Cromwell’s bid to serve as debtors’ counsel. The approval came after careful consideration, highlighting the absence of any perceived conflicts of interest. This decision marks a crucial step in the legal proceedings surrounding the FTX exchange.

Conflict of Interest Concerns Dismissed

The judge overseeing the case explicitly stated no concerns regarding potential conflicts of interest. Sullivan & Cromwell's prior involvement with FTX was not deemed problematic, allowing the firm to proceed without hindrance. The clear dismissal of these concerns has set a precedent for the firm’s future involvement in the case.

U.S. Trustee's Objections Waived

In addition to the judge's approval, the U.S. trustee also waived all her objections to Sullivan & Cromwell's appointment. This waiver further solidified the firm’s position as the debtors’ counsel, providing a seamless path forward in the proceedings. The absence of objections contributes to streamlining the bankruptcy process.

Implications for the FTX Case

The approval of Sullivan & Cromwell as debtors’ counsel could significantly influence the trajectory of the FTX bankruptcy case. With legal representation now firmly in place, the case is poised to advance more efficiently. This development may have broader implications for similar cases in the future, where conflict of interest concerns might arise.

Overall, the judge’s decision underscores the importance of thorough legal evaluations in high-profile bankruptcy cases, ensuring fair and unbiased proceedings. Sullivan & Cromwell’s involvement is expected to play a pivotal role as the case progresses.