A recent discovery made people wonder if the current FTX advisers knew about emails sent between Voyager’s lawyer for restructuring and the current FTX advisers.
FTX Advisor And Voyager’s Lawyer’s Emails Were Released
The Voyager Creditors Committee reported communications from the partner representing FTX at Sullivan & Cromwell (S&C). These emails were submitted as evidence as part of the ongoing argument regarding FTX’s proof of claim in Voyager.
Voyager chose Darren Azman, an attorney specializing in business restructuring, last year, and S&C partner Andrew G. Dietderich communicated with him via email. The emails submitted as proof all took place on November 7th and 8th, two days before news of FTX’s liquidity issues broke. After a few weeks, the exchange sought and was granted Chapter 11 bankruptcy protection.
Andrew G. seems to have convinced Darren Azman through a series of tweets that the rumors about FTX were false and likely made up by the Binance exchange to spread fear, uncertainty, and doubt (FUD).
S&C, via Andrew, falsely claimed in the study that the now-defunct exchange was extremely reliable just days before it collapsed. CEO and S & C client John Ray first testified that FTX had “an complete lack of record-keeping” and “no internal controls whatsoever.”
Darren Azman wrote Andrew on November 7 to discuss customer complaints about FTX and Alameda Research’s lack of liquidity. Darren also invited the law firm to join them and field questions on FTX. On the other hand, Andrew. chimed in, adding, “FTX doesn’t use customers’ funds or assume credit risks at all.” Another point made by the partner was that the defunct exchange could not have liquidity problems because it does not make loans.
Darren Azman expressed his continued worries in an email the following day. He questioned Andrew on whether or not the FTX pullout halt rumours were accurate. Although Andrew acknowledged that this was the first time he had heard the stories, he was sceptical. However, he dismissed the talk as “Binance Nonsense.”
The Legal Community Lacked FTX Expertise
Recent evidence suggests that the attorneys were woefully uninformed about FTX’s operations.
For example, the attorneys were unaware that FTX acted as a loan facilitator. A counterargument suggests the advisors may have been in on the scam all along and were just trying to keep their secrets to themselves. Either way, it seemed as though they had given a skewed version of events to a person who was potentially affected.
