Disgraced Crypto Billionaire SBF Blames Bankruptcy Law Firm for FTX Collapse
Disgraced crypto billionaire Sam Bankman-Fried (SBF) is serving a 25-year jail sentence following FTX's collapse. Recent revelations have shed light on his decision to hire new leadership and the legal firm's role in the bankruptcy proceedings.
In December 2022, SBF was invited to testify before Congress about FTX's demise. However, he was arrested by Bahamian police and extradited to the U.S. before he could appear. The law firm Sullivan & Cromwell (S&C) played a significant role in the bankruptcy saga. They proposed John J. Ray III's hire as chief restructuring officer, a move SBF now regrets. He believes this was his 'single biggest mistake'.
SBF claims he received a call about a potential external investment that could have saved FTX minutes after signing the company over to new management. This revelation has raised questions about the swiftness of the bankruptcy proceedings. S&C, who had previously represented FTX, earned $171.8 million in legal fees by June 2024. Meanwhile, the FTX estate has distributed a total of $7.8 billion to creditors as of September 30, 2025.
The conflict of interest concerns surrounding S&C's role in FTX's bankruptcy continue to linger. Despite SBF's claims, the bankruptcy proceedings have resulted in significant payouts to creditors. The full extent of the collapse's impact and potential alternatives remain subjects of ongoing investigations and debates.
