The claim that FTX investors had against Sullivan & Cromwell (S&C), a well-known law company that was working on FTX’s cases, has been dropped. The claim from earlier this year said that the company helped bring down FTX and made money off of the company’s multibillion-dollar fraud. But the main claimants, who were represented by the Moskowitz Law Firm, have now dropped the case on their own.
When the case first started, it said that Sullivan & Cromwell helped with theft by giving FTX legal advice while it was running. The claimants wanted to be paid for losses caused by civil conspiracy and breaches of trust. But when the plaintiffs looked at the evidence, they decided it wasn’t enough to back their claims against the law business.
Attorney Adam Moskowitz, who is defending the investors, said that removing S&C from the case would make it easier to get the victims’ money. He said that since there wasn’t enough proof to go forward with the case, it would be best for FTX’s creditors to focus on other people who might be involved.
This change comes as FTX continues to deal with its complicated bankruptcy process. A U.S. bankruptcy court recently accepted a plan to shut down FTX’s business. This will allow creditors to be paid back. The plan calls for getting back billions of dollars in assets to pay people who were hurt by the company’s failure.
Sullivan & Cromwell is happy that the case was thrown out, pointing out that the claims made against them were not true. The law firm’s main goal is still to help FTX’s new management get back assets that can be used to pay back bondholders.
Now that this case has been thrown out, FTX’s creditors and legal teams can focus on getting money from other people who were involved in the collapse of the exchange. As the bankruptcy procedures for FTX continue, work is being done to get back funds, sell assets, and hold other organizations responsible.
