FTX’s former chief counsel claims that US legal counsel referred the business to S&C.

A former chief attorney for FTX has accused the company’s U.S. general counsel of sending the business to Sullivan & Cromwell (S&C) — the firm currently serving as bankruptcy counsel for FTX. Is.

Daniel Friedberg, who was FTX’s chief regulatory officer until he resigned on November 8, made the allegations on January 19 as part of a court hearing. Filing.

The filing was a declaration in support of an FTX creditor’s objection to FTX’s plan to continue using S&C as its attorneys during the bankruptcy case.

In the statement, Friedberg alleges that FTX.US lead counsel Ryan Miller, a former S&C partner, steered business to his former law firm in several cases, with Friedberg saying:

“Mr. Miller informed me that it was very important to him personally to bring a lot of business to S&C because he wanted to return there as a partner after his work at Lenders.

Friedberg claims in the filing that he reminded Miller that his “loyalty” was to the debtor and not to S&C, which he suggested “continued to be an issue during his tenure” at FTX.

After Friedberg hired Miller in early 2020, Miller asked if he could hire his former law firm, to which Friedberg responded by saying it was Miller’s job. was “hiring the best outside counsel just for the job.”

Miller joined S&C to become the primary adviser to FTX.US, FTX Derivatives (formerly LedgerX) and Sam Bankman Fried’s holding company Emergent, Friedberg wrote.

He noted that S&C has also served as a personal adviser to Bankman-Fried and another key FTX executive, Nishad Singh.

Related: FTX CEO says he’s looking to relaunch exchange: report

Although the filing is merely a declaration in support of the FTX creditors’ objection to the retention of FTX attorneys Sullivan & Cromwell LLP, it makes a number of allegations that were previously unknown.