FTX controversy sees another turn as US District Judge Ronnie Abrams recused herself from the Samuel Bankman-Fried(SBF) case. She said that her husband is a partner at a law firm that advised the bankrupt FTX.
On Friday, the judge clarified in an order that the law firm, Davis Polk & Wardwell LLP represented parties that may be unfavorable to FTX and SBF in proceedings.
My husband has had no involvement in any of these representations.
Abrams further added that such matters have confidential details that are not known to the court. Thus, the court recused itself from this action in order to avoid any conflict, said Abrams.
Note that Abrams’ husband, Greg D. Andres, is a partner at the law firm Davis Polk & Wardwell, which had advised FTX back in 2021.
As a result, a new judge will be appointed from the Southern District of New York to take forward the case which recently found Gary Wang and Caroline Ellison guilty. SBF’s aides Wang and Ellison are cooperating with prosecutors.
FTX led to several law firms getting into action to save the firm and their executives. Law firm Sullivan & Cromwell received an advance fee of $12 million from an FTX-controlled firm just before FTX filed for bankruptcy.
Quinn Emanuel, which is the largest law firm in the world for business litigation and arbitration, is also working as a special counsel for FTX and its executives. Quinn Emanuel is trying hard to look for legal claims and save the bankrupt firm.