According to TechFlow, on October 10, Cointelegraph reported that FTX creditors voluntarily withdrew the class action lawsuit against the US law firm Sullivan & Cromwell (S&C). Moskowitz Law Firm, the chief representative of the plaintiffs, stated that the withdrawal was voluntary and did not involve any settlement agreement.

On February 16, 2024, a group of FTX creditors sued S&C, alleging that the law firm participated in and profited from FTX's multi-billion dollar fraud. The lawsuit seeks damages for civil conspiracy, aiding and abetting breach of fiduciary duty, and aiding and abetting fraud. S&C has served as FTX's external legal counsel in multiple transactions and is currently overseeing FTX's bankruptcy proceedings.

Adam Moskowitz, founder and managing partner of the Moskowitz Law Firm, explained the reasoning behind the withdrawal of the lawsuit: "Based on the evidence we have seen, we do not believe there is sufficient merit to pursue the lawsuit, so we are withdrawing the lawsuit. Now, we can sit down and work together to try to obtain the maximum amount of compensation for the victims from other third parties."