SBF Lawyers End Representation of FTX Due to Conflict of Interest

Lawyer Martin Flumenbaum said Sam Bankman-Fried's "relentless and disruptive tweets" negatively impacted reorganization efforts lawyers.

Paul, Weiss, the law firm supporting FTX CEO Sam Bankman-Fried (SBF) in the midst of bankruptcy, has waived representation for the entrepreneur, citing a conflict of interest. The decision to step down from representation after SBF's tweets were found to disrupt the law firm's reorganization efforts.

Beginning on November 14, SBF posted a series of tweets that caught attention on Crypto Twitter. The move, however, sparked speculation that encrypted tweets were being used to prevent bots from noticing simultaneously deleted tweets. While no ill intent could be concluded, Paul Weiss' attorney Martin Flumenbaum felt that SBF's "relentless and disruptive tweets" were having a negative impact on the reorganization efforts:

"We informed Mr. Bankman-Fried several days ago, after FTX filed for bankruptcy, that conflicts arose which prevented us from representing him."

The law firm's decision to forego helping SBF coincided with a much-anticipated decision by fellow fraudster Elizabeth Homes, who was sentenced to prison after being found guilty of criminal fraud.

SBF is currently under scrutiny in several directions, including ongoing investigations into the misuse of client funds and the disclosure of bankruptcy-related documents.

Despite informing the defendants, the court can deny a lawyer's request and order them to continue representing them, which may seem impossible given SBF's behavioral issues raised by the law firm. lawyers.

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