Paul, Weiss, the law firm representing former FTX CEO Sam Bankman-Fried (SBF), is now withdrawing, citing an existing conflict of interest. This decision was made after SBF’s continued Twitter activity frustrated the company’s efforts.
Since November 14, Bankman-Fried has continued to post tweets that are causing a sensation in the crypto space. Some observers assume that the sometimes cryptic tweets from the former FTX CEO are a deliberate red herring to push older entries to the background and make them harder to find. Although the actual intention cannot be finally clarified, stressed Lawyer Martin Flumenbaum that his former client’s “incessant and disruptive tweets” negatively affect the work of Paul, Weiss:
“We informed Mr. Bankman-Fried several days ago that a conflict of interest arose following the bankruptcy of FTX that prevents us from continuing to represent him.”
SBF is currently under pressure from several directions as new allegations come to light. Among other things, it is now being examined whether the misappropriation of user funds has criminal relevance.
Although the firm is withdrawing voluntarily, the judges in the pending cases could decide that Bankman-Fried’s lawyers should continue. However, this is unlikely because Paul Weiss explicitly referred to the behavior of the former FTX boss as the reason for the termination of the contractual relationship.
Meanwhile, the head of Binance, Changpeng Zhao, spoke for the first time about his cryptocurrency exchange’s plans at the time regarding a potential acquisition of FTX:
“As the [SBF] He came to me, he knew I was desperate. If we couldn’t help you, then probably no one could. It is very likely that others before us have rejected this deal.
One purported takeover was quickly scrapped after Binance identified much bigger issues with FTX than just the liquidity bottleneck in a very short time.
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