NEW YORK, Jan 13 (Reuters) - Several FTX employees have turned to law firm Covington & Burling to help them deal with questions from U.S. authorities investigating the collapse of the cryptocurrency exchange and actions by its founder Sam Bankman-Fried, three people familiar with the matter told Reuters.
Arlo Devlin-Brown, a New York-based Covington partner and former Manhattan federal prosecutor, is acting as so-called pool counsel representing current FTX employees as individuals being asked to share information with prosecutors and regulators, said the people, who spoke on the condition of anonymity.
Companies facing wide-ranging investigations often hire pool counsel for employees. The use of pool counsel suggests that federal prosecutors in Manhattan probing FTX's collapse may be interested in questioning a deep roster of employees.
Bankman-Fried, 30, was arrested in December on charges of stealing customer funds to plug losses at his hedge fund, Alameda Research, and lying to investors and lenders.
The one-time billionaire pleaded not guilty. Two close associates pleaded guilty and agreed to cooperate with prosecutors. Damian Williams, the top federal prosecutor in Manhattan, has urged others with knowledge of wrongdoing to come forward.
"It's nerve-wracking to participate in an interview with the FBI and the U.S. Attorney's office, regardless of your personal exposure," said Sarah Krissoff, a former federal prosecutor in Manhattan and now a partner at Day...
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