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- Lawyers for FTX say Sam Bankman-Fried is weaponizing Twitter as he pushes back against bankruptcy proceedings.
- “One of the things that the debtors have been facing generally in these cases is assault by Twitter,” a lawyer said.
- A judge in the FTX bankruptcy case also rejected claims that the Sullivan & Cromwell law firm has a conflict of interest.
Lawyers for FTX said former CEO Sam Bankman-Fried is weaponizing Twitter in an attempt to disrupt the bankruptcy process.
In recent tweets and Substack posts, Bankman-Fried has accused the Sullivan & Cromwell law firm of pressuring him to file for bankruptcy as FTX was collapsing in November. The firm served FTX before the crash and is also representing it in Chapter 11 proceedings.
Sullivan & Cromwell partner James Bromley said in a court proceeding on Friday that the firm is “fighting a ghost” as it disputes SBF’s claims without being able to confront him in court.
“One of the things that the debtors have been facing generally in these cases is assault by Twitter,” Bromley said.
Bankman-Fried remains under house arrest at his parents’ home Palo Alto, California, as he awaits trial on fraud charges. He has pleaded not guilty.
Bromley’s comments occurred at a hearing where the bankruptcy judge weighed a motion from FTX clients who argued the law firm’s appointment as FTX counsel was a conflict of interest due to Sullivan & Cromwell’s history with the crypto exchange.
But Judge John Dorsey rejected to those claims, saying there was no evidence of actual conflict.
Still, Bromley told the court the firm should have been more forthright about its connection to FTX sooner in the bankruptcy process.
Earlier in the week, the law firm disclosed that it performed $10 million worth of legal work on behalf of FTX before the exchange filed for bankruptcy.
“In retrospect, your honor, we should have gone further in the original declaration,” he said.