Home > NEWS > Judge slams senators’ letter against FTX lawyers as ‘inappropriate’

Judge slams senators’ letter against FTX lawyers as ‘inappropriate’

Bankruptcy judge John Dorsey called the bipartisan letter “inappropriate,” and says he won’t take it into account in his decision for an independent examiner.

The presiding judge who settled FTX's bankruptcy reportedly strongly criticized a joint letter from four US senators requiring separate verification of the case.

Senators wrote on Jan. 9 to state their anxiety about the relationship between FTX and Sullivan&Cromwell LLP, according to Cointelegraph. Sullivan&Cromwell LLP, a key law firm in the bankruptcy system, will be responsible for verifying wrongdoing that the trading center has been accused of in the past.

But at a debate on January 11th, Robert Dorsey, chief judge of the Delaware Regional bankruptcy Court, called the letter "inappropriate unilateral communication", and its confirmation did not care much about it.

According to a report by Law360 on January 11, she stated in the hearing system: "We will make my determination on this kind of issue only on the basis of acceptable direct evidence and the arguments put forward at the public trial site."

Unilateral refers to the actions taken by one party in the policy system without the participation of any other party.

The joint letter was sent to Judge Dorsey on January 9 through senators of both parties-Robert Hickenlooper, General Tillis, Elizabeth Warren and Cynthia Ramis-who doubted the appointments of Sullivan and Cromwell and supported a resolution to re-serve as a separate auditor.

The resolution was proposed by the trustee of the United States on December 12.

In the letter, senators stressed that the law firm had made legal and regulatory proposals to FTX that one of its members had left to work at FTX, prompting one of the senators to hint at a possible transfer of benefits.

A spokesman for Sullivan&Cromwell told Cointelegraph that the law firm was in line with the concept of "no interest" in foreign bankruptcy laws and had "never served as a key outside legal adviser to all FTX entities".

The presiding judge's rejection of the senator's letter does not mean that he refuses to serve as a separate auditor or allows Sullivan&Cromwell to be a lawyer for FTX.

The presiding judge also needs to check the negative opinion of FTX debtor Warren Winter on the appointment of Sullivan&Cromwell, whose model submitted a revised negative on January 10th, claiming that the appointment was likely to undermine public confidence in the bankruptcy process, but that the law firm was originally the "overall objective of research" for its own "potential obligations".

Individual auditors are generally served by the bankruptcy people's court to investigate the small details of complex cases submitted to him and to provide data to the court from a separate perspective.

They have also been appointed in other high-profile bankruptcy cases, such as Lehman Brothers accounts and password trading center Celsius during the financial crisis.

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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