FTX Examiner Clears Sullivan & Cromwell in Robinhood Shares Deal

FTX Trading Ltd. counsel Sullivan & Cromwell LLP wasn’t conflicted and didn’t ignore red flags in helping the crypto firm’s co-founder Sam Bankman-Fried acquire a stake in Robinhood Markets Inc. worth more than $600 million, a court-approved examiner said in a report made public Wednesday.

The examiner also concluded that the bankrupt cryptocurrency company likely doesn’t have claims to unwind a money-losing deal for derivatives exchange LedgerX, which FTX bought for $300 million but sold for just $50 million, according to the examiner’s latest report filed in the US Bankruptcy Court for the District of Delaware.

“The Debtors likely do ...