© Michael M. Santiago/Getty Images Sam Bankman-Fried. Michael M. Santiago / Getty Images- FTX's lawyer, Sam Bankman-Fried, says they are arming Twitter by rejecting bankruptcy proceedings.
- "One of the things that debtors generally have to deal with in these cases is the Twitter attack," said one lawyer.
- FTX bankruptcy judge dismisses Sullivan & Cromwell law firm's conflict of interest claim
FTX lawyers say former CEO Sam Bankman-Fried is using Twitter to thwart bankruptcy proceedings.
In recent tweets and posts on Substack, Banman-Fried has accused law firm Sullivan & Cromwell of being under bankruptcy pressure when FTX collapsed in November. The firm provided services to FTX prior to the disaster and also represents it in the Chapter 11 proceeding.
James Bromley, a partner at Sullivan & Cromwell, said in a court filing Friday that the firm is "fighting the spirit" of SBF's claims without being able to fight them in court.
"One of the things that lenders are dealing with in these cases is the onslaught of Twitter," Bromley said.
Banman-Fried has been under house arrest at her parents' home in Palo Alto, California while she faces fraud charges. He pleaded not guilty.
Bromley's comments came during a hearing in which a bankruptcy judge is considering a request by FTX clients that the law firm's appointment as FTX's counsel is a conflict of interest because of Sullivan & Cromwell's history.
But Judge John Dorsey dismissed those claims, saying there was no evidence of an actual conflict.
However, Bromley told the court that the company should have been more forthright about its relationship with FTX during the bankruptcy process.
Earlier this week, the law firm said it did $10 million worth of legal work on behalf of FTX before filing for bankruptcy.
"In retrospect, your honor, we should have gone further in the original statement," he said.