Attorney Martin Flumenbaum believed that Sam Bankman-Frieds incessant and disruptive tweeting negatively impacted the reorganization efforts of the lawyers. 5534 Total views 46 Total shares Listen to article 0:00 News Paul, Weiss, the law firm backing FTX CEO Sam Bankman-Fried (SBF) amid bankruptcy, renounced representing the entrepreneur, citing a conflict of interest. The decision to withdraw from representation after SBFs tweets were found to disrupt the law firms reorganization efforts.
Starting Nov. 14, SBF published a series of tweets that amassed extensive attention across Crypto Twitter. The move, however, sparked speculations that the cryptic tweets were used to distract bots from noticing concurrently deleted tweets. While no ill-intent could be concluded, Paul, Weiss attorney Martin Flumenbaum believed that SBFs incessant and disruptive tweeting was negatively impacting the reorganization efforts:We informed Mr. Bankman-Fried several days ago, after the filing of the FTX bankruptcy, that conflicts have arisen that precluded us from representing him.
The law firms decision to back out from helping SBF coincided with a much-awaited ruling of fellow fraudster Elizabeth Homes, who got sentenced to prison after being convicted of criminal fraud.
SBF currently faces scrutiny from multiple directions, including ongoing investigations around the misuse of customer funds and disclosing of bankruptcy-related documents.
Despite informing the defendants, the court may refuse an attorneys request and order them to continue representation which may seem impossible considering SBFs behavioral concerns raised by the law firm.
Related: Sam Bankman-Fried says he regrets filing for bankruptcy: Report
Recently, Binance CEO Changpeng CZ Zhao opened up about the time when Binance was almost ready to bail out FTX from a collapse. Reflecting on the situation, he said:When he came to me, I knew he was desperate. If we cant help him, theres probably nobody else that would. Probably a bunch of people passed on the deal before us.
However, the deal for a takeover was called off after a due diligence revealed bigger problems. #Twitter #Fraud #Law #Business #Court #Sam Bankman-Fried #FTX #Regulation Related News What is Solana (SOL) Pay, and how does it work? I predicted FTX’s collapse a month before it happened FTXs new CEO John Ray coldly addresses SBFs erratic tweets Bahamian liquidators reject validity of FTXs US bankruptcy filing FTX names Kroll as claims agent, to update users on bankruptcy developments
