PANews reported on May 24, citing Cryptoslate, that Robert J. Cleary, the examiner appointed by the U.S. Bankruptcy Court for the District of Delaware, released a detailed report recommending a deeper investigation into the bankrupt FTX Group, particularly focusing on FTX.US, its asset management practices, and the legal representation by Sullivan & Cromwell (S&C). The report outlines the necessity of conducting three main investigations to further clarify the specifics of FTX Group's collapse.

The report pointed out that there were significant fund shortages on FTX.US's balance sheet, especially in November 2022, suggesting possible commingling of customer and company assets and potential misuse of funds. Cleary called for a comprehensive investigation to determine the causes, frequency, and solutions for the fund shortages, and to enhance public confidence in the bankruptcy proceedings. Additionally, Cleary recommended investigating the transaction in which Ledger Holdings Inc. (LHI) was sold to West Realm Shires Inc. before the bankruptcy to identify potential misconduct and uncover more recoverable assets.

Regarding the role of FTX's law firm Sullivan & Cromwell LLP (S&C), Cleary called for a targeted investigation, particularly concerning their conduct during Sam Bankman-Fried's (SBF) purchase of Robinhood shares. If S&C's representation during this period is found to be improper or conflicted, it could have legal and financial implications for SBF and other related individuals, and might even result in S&C losing its qualification to represent the debtor in the bankruptcy proceedings.