The bankruptcy proceedings of the cryptocurrency exchange FTX have taken a significant turn, as creditors have launched a class-action lawsuit against Sullivan & Cromwell, LLP, the law firm overseeing the case. The lawsuit, filed in the United States District Court for the Southern District of Florida, Miami Division, accuses Sullivan & Cromwell of complicity in what is described as the "FTX Group’s multibillion-dollar scam."

Key Allegations:

The legal complaint alleges that Sullivan & Cromwell played a role in the fraudulent activities that led to FTX's downfall. While specific details of the alleged complicity are complex, the lawsuit suggests that the law firm benefitted financially from its involvement with FTX.

Plaintiffs' Claims:

The plaintiffs, representing themselves and others similarly affected, claim that Sullivan & Cromwell's actions and advice were integral to the perpetuation of FTX's operations, which ultimately harmed the exchange's creditors and customers.

Legal Basis:

The lawsuit's legal basis appears to focus on the firm's alleged direct involvement and financial gain from FTX's operations, suggesting a breach of legal and ethical standards. The exact grounds for the claims hint at a deep entanglement with FTX's management and decision-making processes.