<p><a href="https://bitcoinist.com/paradigm-official-regretful-after-investing-in-ftx/">A group of FTX investors</a> have instituted a proposed class action against US law firm Sullivan &amp; Cromwell for their role in the <a href="https://www.newsbtc.com/ftx/sam-bankman-fried-100m-political-favors/" rel="nofollow noopener" target="_blank">bankrupt crypto exchange’s fraud</a> against its customers. The law firm is known to have worked for the crypto exchange during its rise to prominence, and now the plaintiffs argue that they are also culpable for the company’s wrongdoing.&nbsp;</p> 
<h2 id="details-about-the-proposed-class-action">Details About The Proposed Class Action</h2> 
<p>According to the <a href="https://fingfx.thomsonreuters.com/gfx/legaldocs/mopalwrljva/Garrison%20v.%20Sullivan%20Cromwell%20-%20complaint.pdf" rel="nofollow noopener" target="_blank">court filing</a>, the plaintiffs assert that FTX could not have <a href="https://bitcoinist.com/sam-bankman-fried-ftx-engineer/">achieved fraud</a> on such a “tremendous scale” with the help of Sullivan &amp; Cromwell (S &amp; C). They claim that the law firm provided the <a href="https://www.newsbtc.com/news/major-reveals-from-the-ftx-bankruptcy-filing-whats-the-takeaway/" rel="nofollow noopener" target="_blank">defunct crypto exchange</a> with “immense resources, connections to regulators, expertise, and assistance,” vital to perpetuating the scheme.&nbsp;</p> 
<p>The court document highlighted how S &amp; C formed a close relationship with FTX through the company’s <a href="https://www.newsbtc.com/news/ethereum/ftx-hacker-becomes-35th-largest-ethereum-eth-whale/" rel="nofollow noopener" target="_blank">General Counsel, Ryne Miller</a>, who once worked at the law firm. Through him, S &amp; C is said to have “solidified their involvement and interest in FTX’s growth and expansion.” The law firm was also revealed to have provided legal services to FTX’s subsidiaries, including <a href="https://bitcoinist.com/former-ftx-staff-pour-17m-for-crypto-startup/">Alameda Research</a>.&nbsp;</p> 
<p>Further elaborating on S&amp;C’s deep involvement with the exchange and its sister company, the plaintiffs suggested that there was no way that the law firm wasn’t aware of the fraud and even took steps to aid these companies in their misdealings. Meanwhile, the law firm didn’t stop there; they also sought to benefit from <a href="https://www.newsbtc.com/news/major-reveals-from-the-ftx-bankruptcy-filing-whats-the-takeaway/" rel="nofollow noopener" target="_blank">FTX’s collapse</a>.&nbsp;</p> 
<p>Sullivan and Cromwell, alongside Miller, were accused of pushing “heavily” for FTX to file for bankruptcy. Miller also apparently ensured that $4 million was wired to the law firm to retain its services for the bankruptcy proceedings. Bitcoinist <a href="https://bitcoinist.com/ftx-lawyers-bill-40-million/">once reported</a> how the law firm had billed almost $40 million for work done in the crypto exchange’s bankruptcy case.&nbsp;</p> 
<h2 id="criticism-against-proposed-sale-of-ftx-s-sol-tokens">Criticism Against Proposed Sale Of FTX’s SOL Tokens</h2> 
<p><a href="https://bitcoinist.com/ftx-restruct-plan-leaves-creditors-dumbfounded/">FTX creditor Sunil Kavuri</a> recently <a href="https://x.com/sunil_trades/status/1765708567129038883?s=20" rel="nofollow" target="_blank">highlighted</a> the irregularity in the <a href="https://www.newsbtc.com/news/solana/pantera-capital-plans-250m-solana-sol-buy-analyst-predicts-record-rally-toward-1000/" rel="nofollow noopener" target="_blank">proposed sale</a> of FTX’s discounted SOL tokens to Pantera Capital. Sunil stated that these tokens are meant to be distributed to the exchange’s creditors rather than sold to the crypto-focused asset manager. Pantera will reportedly buy these SOL tokens at a discounted price of $59.95 each.&nbsp;</p> 
<p>That doesn’t sit well with Sunil and other creditors, mainly because it was previously revealed, as part of <a href="https://bitcoinist.com/ftx-abandons-restart-plan/">FTX’s repayment plan</a>, that the bankrupt crypto exchange will repay customers based on the crypto prices as of November 2022. These customers argue that the tokens belong to them and it isn’t proper for them to be paid a fraction of it in the dollar equivalent.&nbsp;</p> 
<p><img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/WXvHEudO/" alt="FTT Token price chart from Tradingview.com (FTX Sam Bankman-Fried fraud)" width="3286" height="1530"></p>

Sam Bankman-Fried Fraud: FTX Users Drop Bombshell Lawsuit On Bankruptcy Lawyers

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