12 million for FTX bankruptcy
2022.12.24 11:47
12 million for FTX bankruptcy
Budrigannews.com – According to a court filing dated December 21, the defunct crypto exchange FTX paid bankruptcy attorneys a retainer of $12 million as security for the payment of its fees and expenses during Chapter 11 bankruptcy proceedings.
West Realm Shires Services Inc. paid $12 million to Sullivan & Cromwell LLP (S&C), a New York City-based law firm, for FTX’s legal services. In addition, the filing confirmed that FTX paid S&C nearly $3.5 million in the past 90 days, or since August 26, 2022.
A portion of the court filing that details FTX’s previous payments to the S&C law firm.
According to the information provided, FTX paid at least $15.5 million for S&C’s legal services and holds nearly $9 million of the $12 million retainer, according to the filing.
On November 11, FTX filed for bankruptcy as a result of the series of payments. The CEO, Sam Bankman-Fried, also resigned. Investors in FTX lost access to the funds that were held on the exchange following the subsequent shutdown of the cryptocurrency exchange.
Proof-of-reserve (POR) initiatives shared evidence of the existence of users’ funds for some exchanges to regain investor confidence. Paxful CEO Ray Youssef, on the other hand, supported the concept of Bitcoin (BTC) self-custody.
Region Judge Ronnie Abrams pulled out her cooperation from the FTX case subsequent to uncovering that a law office, where her better half fills in as an accomplice, had exhorted the trade in 2021.
She added the following, while making it clear that her husband was not involved in any of these representations:
“Nonetheless, to avoid any possible conflict, or the appearance of one, the Court hereby rescues itself from this action.”
The purpose of Judge Abrams’ withdrawal from the FTX case was to eliminate any potential conflicts of interest.
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