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Sullivan & Cromwell LLP, the law firm FTX tapped to steer it through bankruptcy, is facing scrutiny from federal lawmakers over whether its lawyers knew about problems at the cryptocurrency exchange before the company collapsed and co-founder Sam Bankman-Fried was charged with fraud, WSJ Pro Bankruptcy reported. A bipartisan group of U.S. senators said in a letter Monday that Sullivan & Cromwell should disclose whether its lawyers suspected fraud at FTX or had concerns about the company’s lacking appropriate legal controls before it filed for chapter 11 in early November. Law firms seeking to work in chapter 11 are required under bankruptcy rules to disclose any past representations that could pose a conflict of interest before they can be officially retained. Sullivan & Cromwell worked for FTX before its collapse, charging more than $8.5 million in legal fees before the bankruptcy, according to the law firm’s retention application. Companies commonly use existing law firms to handle bankruptcy filings, but the arrest of Mr. Bankman-Fried and other former FTX executives has drawn lawmakers’ attention to Sullivan & Cromwell’s prior work for the exchange. Four U.S. senators cited their concerns with the law firm in a letter urging Judge John Dorsey of the U.S. Bankruptcy Court in Wilmington, Del., who is overseeing the FTX case, to appoint an independent examiner to review how and why FTX failed.

In a far-reaching move that could raise wages and increase competition among businesses, the Federal Trade Commission on Thursday unveiled a rule that would block companies from limiting their employees’ ability to work for a rival, the New York Times reported. The proposed rule would ban provisions of labor contracts known as noncompete agreements, which prevent workers from leaving for a competitor or starting a competing business for months or years after their employment, often within a certain geographic area. The agreements have applied to workers as varied as sandwich makers, hairstylists, doctors and software engineers. Studies show that noncompetes, which appear to directly affect roughly 20 percent to 45 percent of U.S. workers in the private sector, hold down pay because job switching is one of the more reliable ways of securing a raise. Many economists believe they help explain why pay for middle-income workers has stagnated in recent decades. Other studies show that noncompetes protect established companies from start-ups, reducing competition within industries. The arrangements may also harm productivity by making it hard for companies to hire workers who best fit their needs. The public will be allowed to submit comments on the proposal for 60 days, at which point the agency will move to make it final. An F.T.C. document said the rule would take effect 180 days after the final version was published, but experts said it could face legal challenges.

New management at the collapsed crypto exchange FTX said it would try to recoup donations made by Sam Bankman-Fried and other executives, which include tens of millions of dollars in contributions to U.S. politicians and affiliated groups, the Wall Street Journal reported. The Securities and Exchange Commission said in a lawsuit last week that customer assets were used to make investments, real-estate purchases and large political donations. Mr. Bankman-Fried was charged last week by federal prosecutors with secretly diverting customer funds from the exchange to an affiliated trading arm. He is currently being detained in the Bahamas, where he and FTX were based. In a statement, the new management of FTX said it has been approached by a number of recipients of contributions and other payments that wanted to return the funds. The company, now led by Chief Executive Officer John J. Ray III, said other recipients should also contact it about returning the payments.