Article/Intelligence
UPDATE 1: Court Grants FTX Examiner Authority to Conduct Additional Investigations Into S&C’s Prepetition Work, FTX.US Balance Sheet Issues
Wed Jun 26, 2024 02:17 PM ET: Judge John T. Dorsey entered an order today, granting FTX examiner Robert Cleary’s motion to conduct additional investigations into the prepetition work of the debtors’ lead bankruptcy counsel Sullivan & Cromwell for FTX and its founder and former CEO Samuel Bankman-Fried as well as the circumstances surrounding “holes” in the balance sheet of the debtors’ U.S.-based exchange FTX.US (discussed below). The motion was unopposed, according to a June 25 certificate of no objection filed by the examiner. Original Story 6:47 p.m. UTC on June 10, 2024 FTX Examiner Seeks Authority to Conduct Additional Investigations Into Potential S&C Conflicts, LedgerX Shareholder Claims, FTX.US Balance-Sheet Shortfalls Relevant Document: Motion FTX examiner Robert Cleary moved today for authority to conduct additional investigations as proposed in the report on the initial phase of his investigation, as detailed below. Although Cleary found no error in the bankruptcy court’s approval of the debtors’ retention of Sullivan & Cromwell as lead bankruptcy counsel, the report recommended additional limited investigations into the firm’s prepetition work for FTX and its founder and former CEO, Samuel Bankman-Fried, as well as the circumstances surrounding “holes” in the balance sheet of the debtors’ U.S.-based exchange, FTX.US.[...]