FTX Creditors Withdraw Class Action Lawsuit Against Sullivan & Cromwell Amid Ongoing Legal Battles

On October 10, COINOTAG disclosed that creditors of FTX have voluntarily withdrawn their class action lawsuit against the prominent US law firm Sullivan & Cromwell (S&C). Initially filed on February 16, the lawsuit accused S&C of complicity in FTX’s extensive fraud, which led to significant financial losses. The plaintiffs sought damages based on allegations of civil conspiracy, aiding and abetting breach of fiduciary duty, and aiding and abetting fraud. Notably, S&C was engaged as an external advisor for various transactions involving FTX, as well as managing the complex bankruptcy proceedings of the cryptocurrency exchange. This development has raised questions about the legal responsibilities of firms involved in high-stakes financial conditions and the broader implications for crypto market regulation.