Officials from the Department of Justice are now exploring alternative candidates for the monitorship. FinCEN remains inclined towards selecting Sullivan & Cromwell. However, the firm has faced legal challenges from FTX customers and is under examination by a bankruptcy investigator for its pre-collapse services, despite an FTX attorney’s assurance to a bankruptcy court that creditors might fully recover their funds.
Sullivan & Cromwell maintains that its involvement with FTX was restricted, a stance supported by the exchange’s new management, which contests the credibility of Bankman-Fried’s accusations. This will include inspecting internal documents and directly interacting with staff to ensure full compliance with the agreed legal stipulations.
