Regulation

FTX paid $12M retainer to a New York law firm before bankruptcy filing

Defunct crypto alternate FTX paid a retainer of $12 million to chapter attorneys as safety for cost of its charges and bills amid Chapter 11 chapter proceedings, reveals a courtroom submitting dated Dec. 21.

Sullivan & Cromwell LLP (S&C), a regulation agency headquartered in New York Metropolis, obtained $12 million from West Realm Shires Providers Inc. on behalf of FTX for authorized providers. As well as, the filing confirmed that over the previous 90 days, i.e., since Aug. 26, 2022, FTX paid practically $3.5 million to S&C.

Snippet of the courtroom submitting revealing FTX’s historic funds to S&C regulation agency. Supply: aboutblaw.com

Primarily based on the data offered, FTX paid not less than $15.5 million to avail and retain the authorized providers of S&C. The submitting additional revealed that S&C at the moment holds practically $9 million of the $12 million retainer quantity.

Following the collection of funds, FTX filed for chapter on Nov. 11, which was accompanied by the CEO Sam Bankman-Fried’s resignation. On account of the next shutdown of the crypto alternate, FTX traders misplaced entry to the funds saved on the alternate.

For some exchanges, regaining investor confidence meant sharing proof of the existence of customers’ funds by way of proof-of-reserve (POR) initiatives. On the opposite finish of the spectrum, Paxful CEO Ray Youssef, sided with the thought of Bitcoin (BTC) self-custody.

Associated: Crypto Twitter confused by SBF’s $250M bail and a return to luxurious

District Choose Ronnie Abrams withdrew her participation from the FTX case after revealing {that a} regulation agency, the place her husband works as a companion, had suggested the alternate 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 Court docket 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.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button