Patterson Belknap has launched an interdisciplinary FTX Task Force to advise market participants navigating the fallout from the recent collapse of the FTX Crypto Exchange and its affiliates. Complex legal challenges require an integrated and holistic approach to problem solving, and the FTX Task Force brings together attorneys with decades of relevant experience advising clients on complex financial products and guiding clients through high-stakes litigation and investigations during many of the most significant financial market events.
The FTX Task Force is led by financial litigation, bankruptcy and restructuring, white collar defense and investigations, and corporate transactional and financial product structuring attorneys who work seamlessly together to help clients protect their value and navigate today’s complex, unpredictable market.
Our Offering
Single Office, Coordinated Offering. The Task Force will capitalize on our single New York office footprint to seamlessly collaborate across practice areas and offer creative and bespoke solutions necessary to address clients’ complex and evolving business and legal needs.
Industry Experience. We have played a critical role in cutting-edge matters arising out of the financial markets. In response to the 2007-2008 financial crisis, members of the Task Force helped recover over $6.5 billion on behalf of clients in disputes involving hundreds of residential mortgage-backed securities transactions. Members of the Task Force have represented creditors, trustees and financial intermediaries in connection with significant bankruptcy events, including Enron, Lehman Brothers, Nortel and Madoff. The team’s industry experience extends to government investigations and civil litigation involving Libor, Euribor and the precious metals markets.
Government Bench Strength. Members of the Task Force have served as judicial clerks, federal prosecutors, and senior counsel for the Asset Management Unit of the U.S. Securities & Exchange Commission’s Enforcement Division. Leveraging their government experience, the team represents clients in high-profile criminal and regulatory investigations involving alleged violations of securities laws, as well as complex civil litigations that arise out of internal investigations and government scrutiny.
Trial Experience. Our team is not afraid to go to trial, and the industry knows it. The Task Force relishes the challenge of trial, while remaining focused on the best business result for each client. In situations where settlement presents the best option, our reputation as a trial firm precedes us at the negotiating table, enhancing our clients’ chances for a favorable resolution.
Broad Network, Personal Touch. We pride ourselves in understanding our clients’ businesses at a deep level, allowing us to anticipate their legal needs and provide highly tailored services. The Task Force will leverage its global network of leading foreign counsel, financial service advisors, and accounting professionals to meet our clients’ objectives. With our extensive cross-border experience, the team has a deep understanding of foreign regulatory regimes and today’s international market infrastructure.
Our Insights
SEC v. LBRY, Inc.: Federal Court Finds LBRY’s Crypto Token as a Security, December 22, 2022
An Overview of the SEC, SDNY and CFTC Cases Against Sam Bankman-Fried, December 21, 2022
SEC Asks Companies to Disclose Information on Crypto Exposure, December 19, 2022
Patterson Belknap Partners Discuss FTX Task Force, December 9, 2022, Law 360
FTX Bankruptcy Provides A Road Map For Crypto Regulation, December 1, Law 360
Our Integrated Approach
Working together, the FTX Task Force leverages decades of industry experience, coupled with current market knowledge, to deliver client-first results at the forefront of today’s ever evolving financial markets.
Business Reorganization and Creditors’ Rights Representing financial institutions, corporations, individuals as creditors, examiners and Indenture Trustees in high-profile bankruptcies, including litigation and bankruptcy proceedings arising out of the failure of Enron Corporation, Nortel Networks, Lehman Brothers and the estate of Bernard L. Madoff Investment Securities. The team has particular experience in connection with cross-border proceedings under Chapter 15.
Corporate Finance and Capital Markets Advising clients across the globe on highly complex and industry diverse cross-border corporate finance transactions and novel, first-of-a-kind financial product structuring, including digital asset-based equities, special purpose acquisition companies (SPACs), depositary warrants, depositary appreciation rights, and depositary notes for corporate and sovereign debt.
Structured Finance Workouts and Litigation Representing monoline and investor clients in response to the 2007 mortgage and credit crisis, our team has recovered over $6.5 billion on behalf of our clients in disputes involving residential mortgage-backed securities transactions, including a settlement of $1.84 billion in 2022. Our team continues to play a critical role in cutting edge structured finance matters arising out of today's constantly changing financial markets environment.
White Collar Defense and Investigations Conducting internal investigations on behalf of corporate boards and committees into allegations of potential malfeasance or control failures, and representing corporate and individual clients facing allegations of securities and commodities fraud in government investigations and prosecutions, regulatory actions, and high-stakes litigation and arbitration. The team includes former federal prosecutors and a former senior counsel for the U.S. Securities & Exchange Commission’s Enforcement Division.