FTX Creditors Hire Law Firm Paul Hastings as Representation
Paul Hastings beat out multiple law firms that pitched to lead legal work in the bankruptcy proceedings, the Wall Street Journal said.
Paul Hastings LLP has been tapped to represent FTX creditors in the crypto exchange's bankruptcy proceedings, the law firm told CoinDesk on Thursday.
A court document filed on the same day shows 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 creditor committee chose Paul Hastings from among a number of firms that pitched for the role, The Wall Street Journal reported Thursday, citing people familiar with the matter. The report added that the process to select a financial adviser is ongoing. The creditors' committee was formed last Thursday.
As the collapsed global crypto exchange's bankruptcy proceedings continue in the U.S., what remains of the company is attempting to gather over $1 billion in cash assets scattered across the globe.
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.
"They can be contacted," said Sarkessian, a U.S Department of Justice official charged with overseeing bankruptcy cases, of the lawyers that were yet to be appointed. "They do not represent you [the creditors] personally. They may be able to provide some help though, and they may even create their own website potentially for information for creditors."
On Wednesday, FTX's disgraced founder Sam Bankman-Fried was set to be extradited from the Bahamas to the U.S. to face criminal charges. Meanwhile, two executives in his inner circle, Caroline Ellison and Gary Wang, agreed to a plea deal with the Justice Department.
Jack Schickler contributed reporting.
UPDATE (Dec. 22, 13:08 UTC): Reflects confirmation from Paul Hastings LLP in headline and first paragraph.
UPDATE (Dec. 23, 09:15 UTC): Adds court filing reflecting Young Conaway Stargatt & Taylor LLP will also be representing the creditors to second paragraph.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
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.