Top FTX Lawyer Orders Documents Preserved as Investigations Ramp Up

FTX US General Counsel Ryne Miller called the turn of events “disappointing.”

AccessTimeIconNov 10, 2022 at 5:15 p.m. UTC
Updated May 9, 2023 at 4:02 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The top lawyer at FTX US has instructed all FTX employees to preserve their work-related documents, the latest sign of possible legal exposure for Sam Bankman-Fried’s troubled crypto empire.

On Wednesday, FTX US General Counsel Ryne Miller ordered all staff to retain their emails, messages, notes and documents stemming from their work at FTX, FTX US, Alameda and affiliated companies, according to people with direct knowledge. He called the chain of events of the last few days “disappointing developments” in a company-wide message, the people said.

  • Why Worldcoin Is Launching a Layer 2
    20:07
    Why Worldcoin Is Launching a Layer 2
  • Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
    02:17
    Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
  • Base Monthly Active Addresses Increased by 160% in March: Nansen
    00:50
    Base Monthly Active Addresses Increased by 160% in March: Nansen
  • Bitcoin Halving: We Answer Your Questions
    04:16
    Bitcoin Halving: We Answer Your Questions
  • The instruction underscores the compounding legal risks that could stem from FTX’s sudden collapse. This week, the once mighty crypto exchange froze all withdrawals amid allegations that it was mishandling billions of dollars of customer funds. It's also facing multiple investigations from federal and state officials.

    “There are very likely to be civil lawsuits and there's a chance of potential criminal liability,” said Chicago-based attorney Nelson Rosario, who runs a crypto law practice. He said the general counsel’s instruction could be in reaction to or anticipation of investigations.

    FTX US is a legally distinct entity from FTX, but the two companies share common ownership and leadership. Sam Bankman-Fried, who founded FTX, tweeted Wednesday that the U.S. arm of his trading empire was “100% liquid,” and that users could withdraw all their funds. He tweeted something similar about FTX prior to revealing that FTX needed rescuing.

    FTX declined to comment.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Danny Nelson

    Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about