Defunct crypto trade FTX paid a retainer of $12 million to chapter attorneys as safety for fee of its charges and bills amid Chapter 11 chapter proceedings, exhibits a court docket submitting dated Dec. 21.
Sullivan & Cromwell LLP (S&C), a legislation agency headquartered in New York Metropolis, obtained $12 million from West Realm Shires Providers Inc. on behalf of FTX for authorized companies. As well as, the submitting confirmed that over the previous 90 days, i.e., since Aug. 26, 2022, FTX paid almost $3.5 million to S&C.
Snippet of the court docket submitting revealing FTX’s historic funds to S&C legislation agency. Supply: aboutblaw.com
Based mostly on the knowledge supplied, FTX paid no less than $15.5 million to avail and retain the authorized companies of S&C. The submitting additional revealed that S&C at present holds almost $9 million of the $12 million retainer quantity.
Following the sequence of funds, FTX filed for chapter on Nov. 11, which was accompanied by the CEO Sam Bankman-Fried’s resignation. On account of the following shutdown of the crypto trade, FTX buyers misplaced entry to the funds saved on the trade.
For some exchanges, regaining investor confidence meant sharing proof of the existence of customers’ funds through proof-of-reserve (POR) initiatives. On the opposite finish of the spectrum, Paxful CEO Ray Youssef, sided with the concept of Bitcoin (BTC) self-custody.
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District Choose Ronnie Abrams withdrew her participation from the FTX case after revealing {that a} legislation agency, the place her husband works as a associate, had suggested the trade in 2021.
Whereas clarifying that her husband had no involvement in any of those representations, she added:
“Nonetheless, to keep away from any potential battle, or the looks of 1, the Courtroom hereby rescues itself from this motion.”
Choose Abrams’ withdrawal from the FTX case was aimed toward eradicating any battle of curiosity within the FTX case.
