FTX’s former chief counsel has accused the company’s US general counsel of channeling business to Sullivan & Cromwell (S&C), the firm that currently serves as bankruptcy counsel for FTX.
Daniel Friedberg, who served as FTX’s chief regulatory officer until his resignation on November 8, made the allegations as part of a January 19 court filing.
The filing was a declaration upholding FTX creditor objections to FTX’s plans to continue to use S&C as counsel throughout its bankruptcy proceedings.
In the declaration, Friedberg alleges that former S&C partner Rein Miller, lead attorney at FTX.US, turned business to his former law firm in a number of lawsuits. He said:
“Mr. Miller told me that after his stint at Debtors, he would like to return to S&C as a partner, so it is very important that he personally direct more of his business to S&C.”
Friedberg mirrored in the filing that his “loyalties” were to debtors and not to S&C, which he suggested “continued to be an issue throughout his work” at FTX. claims to have reminded
Friedberg asked if Miller could hire his former law firm after Miller was hired in early 2020.
Miller eventually appointed S&C as lead counsel for FTX.US, FTX Derivatives (formerly LedgerX), and Sam Bankman-Fried’s holding company Emergent, Friedberg writes.
He noted that S&C also serves as personal advisor to Bankman-Fried and another key FTX executive, Nishad Singh.
Related: FTX CEO Says He’s Considering Exchange Reboot: Report
While the filing is merely a declaration in support of FTX creditors’ objections to the detention of FTX attorneys Sullivan & Cromwell LLP, it makes a number of previously undisclosed allegations.
Well, I just finished reading the Daniel Friedberg Manifesto.
It’s safe to say that this is one of the most shocking affidavits I’ve read in a long time.
If half of what Mr. Friedberg says is true, he’s blown the top of this bankruptcy case.
— MetaLawMan (@MetaLawMan) January 19, 2023