An investigation into the activities of Sullivan & Cromwell LLP, the legal firm associated with the now-defunct cryptocurrency exchange FTX, has absolved the firm of any negligence or involvement in the exchange's collapse due to financial troubles.

Former U.S. prosecutor Robert Cleary, who conducted the investigation, revealed that Sullivan & Cromwell LLP was not implicated in FTX's fraudulent activities and was unaware of any financial misconduct. Cleary's findings, as reported by Reuters, indicate that there was no evidence suggesting that the law firm ignored warning signs while handling FTX's bankruptcy proceedings and the unsuccessful attempt to acquire Voyager Digital.

Although the investigation noted instances where Sullivan & Cromwell LLP conveyed inaccurate information to third parties, it clarified that the firm was unaware of the misinformation. For example, during discussions regarding Voyager Digital, Sullivan & Cromwell partner Andy Dietderich expressed confidence in FTX's financial stability, unaware that FTX was actively seeking a buyer or investor.

In response to Cleary's findings, Sullivan & Cromwell reaffirmed its confidence in its work for FTX before the bankruptcy filing and emphasized that the investigation rejected baseless allegations regarding its involvement with FTX.

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