Investigation: FTX bankruptcy lawyers did not conspire with the exchange

Sullivan & Cromwell LLP, the law firm overseeing FTX's bankruptcy, was unaware of the serious financial conditions and potential fraud that led to the exchange's collapse, according to an independent investigation. Although lawyers at the firm made false statements on behalf of FTX, they were unaware that the statements were false.
Sullivan & Cromwell expressed confidence in its work prior to the bankruptcy of FTX and welcomed the findings of the examiner denying various unfounded allegations. FTX filed for Chapter 11 bankruptcy protection on November 17, 2022. Previously, Binance had planned to acquire FTX, but eventually rescinded the agreement due to concerns about the financial situation and the mixing of customer funds. This incident caused FTX Token (FTT) to plummet and further exacerbated the collapse of FTX. Subsequently, the media reported that about $1 billion of customer assets of FTX were missing, leading to more panic withdrawals by customers.