FTX Bankruptcy: Paul Hastings LLP to Represent Creditors

Bulletpoints:
• Paul Hastings LLP has been chosen to represent FTX creditors in their bankruptcy proceedings.
• A court document filed on the same day shows that Paul Hastings and Young Conaway Stargatt & Taylor LLP will be handling all papers served or required to be served in the bankruptcy case on behalf of creditors.
• At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors to contact the committee’s counsel once formally in place.

FTX, a global crypto exchange, has tapped Paul Hastings LLP to represent creditors in their bankruptcy proceedings. The New York law firm, along with Delaware-based Young Conaway Stargatt & Taylor LLP, will be handling all papers served or required to be served in the bankruptcy case on behalf of creditors. A court document filed on the same day shows the process to select a financial adviser is ongoing.

At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors looking to secure their representation in the case to reach out to the committee’s counsel once formally in place. She noted that even though the lawyers do not represent creditors personally, “they may be able to provide some help” and could potentially create a website for creditors.

The creditors‘ committee was formed last Thursday and chose Paul Hastings from among a number of firms that pitched for the role. What remains of the company is attempting to gather over $1 billion in cash assets that are scattered across the globe.

Meanwhile, FTX’s disgraced founder Sam Bankman-Fried was set to be extradited from the Bahamas to the U.S. to face criminal charges. Additionally, two executives in his inner circle, Caroline Ellison and Gary Wang, agreed to a plea deal with the Justice Department.

Overall, the bankruptcy proceedings are ongoing, and creditors are urged to contact the committee’s counsel once formally in place to secure their representation in the case. Paul Hastings LLP and Young Conaway Stargatt & Taylor LLP have been tapped to handle all papers served or required to be served in the bankruptcy case on behalf of creditors.