• FTX’s bankruptcy case has a lawyer, James Bromley, representing the debtors who has criticized social media activity against his law firm propagated by posts from former CEO Sam Bankman-Fried.
• In a Jan. 20 hearing in the District of Delaware, lawyers spoke on motions dealing with potential conflicts of interest between Sullivan & Cromley, the law firm tasked with the investigation of FTX’s bankruptcy, and the crypto exchange.
• The judge ruled there were no potential conflicts of interest sufficient to stop Sullivan & Cromwell from continuing to act as the debtors’ counsel.

The bankruptcy case of FTX is currently being heard in the District of Delaware, where debtors are represented by lawyer James Bromley of Sullivan & Cromwell. During the hearing, Bromley criticized the social media activity against his law firm that was propagated by posts from former FTX CEO Sam Bankman-Fried.

The hearing was in regards to motions dealing with potential conflicts of interest between Sullivan & Cromwell, the law firm tasked with the investigation of FTX’s bankruptcy, and the crypto exchange. Former FTX chief regulatory officer Daniel Friedberg filed a declaration with the court alleging that Miller wanted to drive business to Sullivan & Cromwell, claiming he wanted to become a partner with the firm following the bankruptcy case. Bromley argued in court that if the judge were to grant an adjournment based on these allegations, the debtors would face “additional attacks on Twitter” and similar filings likely resulting in delays.

The judge, however, ultimately ruled that there were no potential conflicts of interest sufficient to prevent Sullivan & Cromwell from continuing to act as the debtors’ counsel. Friedberg was not allowed to speak during the proceedings, as he did not appear in court in person.

The ruling is a major victory for Bromley and the debtors he represents, who were facing “assault by Twitter” as a result of Bankman-Fried’s social media activity. It also allows Sullivan & Cromwell to continue to act as the debtors’ counsel, allowing them to carry out the investigation of FTX’s bankruptcy without any potential conflicts of interest.