A committee representing bankrupt crypto exchange FTX’s unsecured creditors, including millions of its customers, has hired a legal adviser to look out for their interest in bankruptcy, WSJ Pro Bankruptcy reported. The nine-member committee has hired Paul Hastings LLP after taking pitches from various law firms for the role, according to people with knowledge of the matter. A process to select a financial adviser is still ongoing. The swift collapse of FTX that was touted only a few months ago as the potential savior of the cryptocurrency industry in the face of a sector meltdown caught its customers off guard and put their investments, many of which were life savings, in jeopardy. Last Thursday, the Justice Department’s bankruptcy watchdog appointed an official committee of FTX creditors, an important constituency in the chapter 11 case that will have its legal fees paid by the company and will represent the interests of customers and other stakeholders.
