An investigation into Sullivan & Cromwell LLP, the law firm associated with the now-defunct crypto exchange FTX, has revealed that the firm was neither involved in the fraud nor aware of the financial troubles that led to the platform’s collapse.
Investigation Findings
Former U.S. prosecutor Robert Cleary conducted the investigation and disclosed that Sullivan & Cromwell LLP was not implicated in the fraud at FTX. Cleary’s report, as cited by Reuters, found no evidence that the law firm overlooked “red flags” while handling the FTX bankruptcy and the ultimately unsuccessful acquisition of Voyager Digital.
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False Statements Without Knowledge
The investigation highlighted that while Sullivan & Cromwell conveyed false statements to third parties, the firm was unaware of the inaccuracies. One notable instance occurred during the Voyager acquisition, where Sullivan & Cromwell partner Andy Dietderich believed FTX’s finances were “rock solid” on the same day Sam Bankman-Fried was searching for a buyer or investor for FTX.
Sullivan & Cromwell’s Response
Following the conclusion of the investigation, Sullivan & Cromwell responded to Cleary’s findings. The firm expressed confidence in its previous work with FTX, stating, “Sullivan & Cromwell remains confident in our pre-petition work for FTX and the commencement of the Chapter 11 cases, and we welcome the examiner’s findings to date rejecting various baseless allegations about our work for FTX.”
