Double Dip: The Ryne Miller Story
Sullivan & Cromwell, the law firm leading the FTX case, has a storm brewing over its myriad conflicts of interest. Where is the independent examiner for FTX?
Watch this video (also available here on Twitter in case there are any playback issues):
FTX was loaded with red flags during Ryne Miller’s tenure as FTX US General Counsel: No independent board of directors. No real accounting department. Near complete absence of corporate controls and oversight. Lack of audited financial statements. Poorly designed limitations for senior management.
Amidst all of these signs of fraud, what did Ryne do?
When hell broke loose, why was Ryne so aggressive about moving money — and control of the proceedings — into the clutches of S&C?
This video only scrapes the surface of Sullivan & Cromwell’s FTX iceberg. Beyond S&C’s egregious legal fees, advisement in the CFTC-regulated LedgerX acquisition, and extensive role as FTX’s legal counsel — there are other deeply concerning conflicts of interest at play with S&C.
Demand an Independent Examiner
Bankman-Fried was a personal client of S&C less than four months before FTX’s bankruptcy filing. Sullivan & Cromwell advised Sam Bankman-Fried on his infamous Robinhood stock transaction.
In the spring of 2022, Bankman-Fried amassed a gigantic position in Robinhood, held through a company set up in Antigua and Barbuda. SBF’s buys over multiple weeks arguably supported Robinhood’s stock price during a period of wild turbulence.
An SEC filing by Ryne Miller discloses the transaction details of less than 30 million of the 56 million Robinhood shares that Bankman-Fried bought in total.
The law firm advising Robinhood during this period? Sullivan & Cromwell.
LedgerX is scheduled for sale on March 22nd — there are many questions that should be asked about the nature of its operations. Ideally before the final auction.
An honest investigation of FTX will require diligence, thoroughness, and transparency.
Sullivan & Cromwell cannot investigate themselves. Any “investigation” into the fraud and criminal activity behind FTX by Sullivan & Cromwell is fundamentally incompatible with justice.
The time to demand an independent examiner for FTX is now.
I assume that SBF invested in Robinhood so that he could stop the company from screwing over people. For example, to prevent another repeat of when Robinhood rescued the hedge funds from the GameStop investors—a sickening, evil maneuver.