According to the investigation, FTX’s bankruptcy attorney did not conspire with the exchange.

An independent investigation by Sullivan & Cromwell LLP, the law firm that oversaw the FTX bankruptcy, found the firm was unaware of the dire financial conditions and fraud that led to the collapse of the once-thriving exchange.

Former United States Attorney Robert Cleary conducted the investigation and found that Sullivan and Cromwell's attorneys representing FTX made false statements without knowing the statements were false.

After the investigation was announced, Sullivan and Cromwell issued the following statement:

“Sullivan & Cromwell has been confident in our pre-petition work for FTX and the commencement of our Chapter 11 cases, and we welcome the examiner's findings to date disproving various unfounded allegations regarding our work for FTX.”

The investigation was ordered after FTX's creditors and customers voiced widespread suspicion and condemnation of Sullivan and Cromwell.

When it was first selected to oversee bankruptcy proceedings, the law firm's pre-bankruptcy work with FTX was met with backlash from concerned creditors and former clients of the forum, who felt it undermined the integrity and objectivity of the legal force.

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In the year On November 17, 2022, FTX filed for Chapter 11 bankruptcy following a series of troubling developments leading to the total collapse of the exchange.

A week before the now famous collapse, Binance sought to acquire FTX and entered into a non-binding agreement to purchase the exchange and take over its daily operations.

The market reacted negatively to the news of the acquisition, and the FTX Token (FTT) price dropped from $22 to $5.50 in one day's trading.

24 hours later, Binance canceled the tentative agreement, citing reports of preliminary investigations from US authorities into FTX's financial position, the influx of customer funds and the widely used exchange.

The cancellation of the deal further exacerbated FTX's decline, fueling already widespread fears that something was not quite right at the company.

A few days after Binance proposed and subsequently terminated the deal, media reports began to emerge that nearly $1 billion in client assets had disappeared from FTX. This prompted further runs on the exchange as customers desperately tried to get their money out of the collapsed platform.