FTX Trading Ltd. counsel Sullivan & Cromwell LLP was not conflicted and did not ignore red flags when assisting the crypto company’s co-founder Sam Bankman-Fried in acquiring a significant stake in Robinhood Markets Inc., valued at over $600 million. This conclusion comes from a court-approved examiner’s report, which was made public recently.
The report also highlighted that FTX, currently in bankruptcy proceedings, is unlikely to have viable claims to unwind its financially unfavorable deal involving the derivatives exchange LedgerX. FTX had acquired LedgerX for $300 million but later sold it for a mere $50 million. This finding was detailed in the examiner’s latest report filed in the US Bankruptcy Court for the District of Delaware.
In related news, the examiner found no clear cause for discrepancies in US customer assets, adding another layer of complexity to the ongoing bankruptcy and restructuring process.
For more details, please read the full article on Bloomberg Law.