Paul, Weiss: Hugh Hefner and Don Henley to Steve Jobs and Eliot Spitzer, SBF’s lawyers have represented the famous – and infamous
Sam Bankman-Fried, the founder and ex-CEO of FTX, has turned to law firm Paul, Weiss for its legal services as his exchange filed for bankruptcy.
The move by Bankman-Fried followed the revelation that FTX customers have turned to David Boies, an American litigator, to potentially launch a lawsuit, according to the Financial Times.
There is some speculation that the FTX founder could be facing legal trouble for allegedly misusing billions of dollars of customer funds.
The cryptocurrency exchange had allegedly used these investments to finance “risky bets” by Alameda Research, Bankman-Fried’s trading firm, according to The Wall Street Journal.
This is said to have gone against FTX’s terms of service, which reads: “None of the digital assets in your account are the property of, or shall or may be loaned to, FTX Trading; FTX Trading does not represent or treat digital assets in users’ accounts as belonging to FTX Trading.”
What is Paul, Weiss?
The law firm, whose full name is Paul, Weiss, Rifkind, Wharton & Garrison, represents many of the world’s largest financial institutions and is “widely recognised” for handling white-collar and regulatory defences.
Its website said: “The firm’s clients have included the largest financial institutions in the world, and the earth’s neediest citizens.”
A long list of clients is outlined on its website, including artist Andy Warhol, Apple co-founder Steve Jobs, The Eagles’ member Don Hanely, Playboy founder Hugh Hefner and former New York governor Eliot Spitzer.
SBF’s new lawyer
Specifically, Sam Bankman-Fried has hired the Paul, Weiss partner Martin Flumenbaum, according to the Financial Times.
Flumenbaum’s Paul, Weiss profile said: “He regularly advises US and international clients on a broad range of litigation issues, with an emphasis on securities, mergers and acquisitions, commercial litigation, intellectual property, antitrust and white-collar matters.”
He is known for representing the high-yield junk bond trader Michael Milken, who was jailed for nearly two years due to violating US security laws. But Milken was pardoned in 2020 by then-president Donald Trump.
Meanwhile, another lawyer has taken control of the FTX group. John Ray III is now the CEO of the bankrupt exchange and will be handling the Chapter 11 proceedings.
He said in a statement: “I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”
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