FTX Creditors Tap Law Firm Paul Hastings for Bankruptcy Representation

Vignesh Karunanidhi
FTX Creditors Tap Law Firm Paul Hastings for Bankruptcy Representation
Source: Hindustan Times

The collapse of the FTX exchange had put the lives of millions of users in jeopardy. The cryptocurrency industry was not prepared to face the downfall of the exchange. The users of the exchange lost millions as the exchange went down.

Many users had vested their trust and funds in the exchange. As the exchange filed for Chapter 11 bankruptcy, the users’ little hope of recovering funds vanished. However, FTX creditors were not ready to give up yet. As per the latest reports, Paul Hastings LLP has been hired by FTX creditors.

FTX creditors hired Paul Hastings to look after bankruptcy proceedings

The initial reports regarding the role of Paul Hastings in the FTX drama were reported by the Wall Street Journal. As per the report, the nine-member committee handpicked Paul Hastings from the list of other law firms. The creditor’s committee came together last Thursday, and the selection of a financial adviser is still an ongoing task. Creditor committees are usually involved in large bankruptcy filings, and they hire their own lawyers to negotiate.

Sam Bankman-Fried, the former CEO of FTX, is on his way to the United States, and his coworkers are assisting in the investigation into them.

The co-founder of FTX, Gary Wang, and the former CEO of Alameda Research, Caroline Ellison, pleaded guilty in the Southern District of New York, according to a statement from U.S. Attorney Damian Williams earlier today.