Paul, Weiss, the law firm backing FTX CEO Sam Bankman-Fried (SBF) amid bankruptcy, renounced representing the entrepreneur, citing a conflict of interest. The decision to withdraw from representation after SBF\u2019s tweets were found to disrupt the law firm\u2019s reorganization efforts.<\/p>\n
Starting Nov. 14, SBF published a series of tweets that amassed extensive attention across Crypto Twitter. The move, however, sparked speculations that the cryptic tweets were used to distract bots from noticing concurrently deleted tweets. While no ill-intent could be concluded, Paul, Weiss attorney Martin Flumenbaum believed that SBF\u2019s \u201cincessant and disruptive tweeting\u201d was negatively impacting the reorganization efforts:<\/p>\n
\u201cWe informed Mr. Bankman-Fried several days ago, after the filing of the FTX bankruptcy, that conflicts have arisen that precluded us from representing him.\u201d<\/p><\/blockquote>\n
The law firm\u2019s decision to back out from helping SBF coincided with a much-awaited ruling of fellow fraudster Elizabeth Homes, who got sentenced to prison after being convicted of criminal fraud.<\/p>\n
SBF currently faces scrutiny from multiple directions, including ongoing investigations around the misuse of customer funds and disclosing of bankruptcy-related documents.<\/p>\n
Despite informing the defendants, the court may refuse an attorney\u2019s request and order them to continue representation \u2014 which may seem impossible considering SBF\u2019s behaviorial concerns raised by the law firm.<\/p>\n