Sullivan & Cromwell LLP (S&C), a New York-based law firm, received $12 million in legal services from West Realm Shires Services Inc. on behalf of FTX.
Former crypto exchange FTX paid bankruptcy attorneys a $12 million advance as security to pay its Chapter 11 bankruptcy fees and expenses, according to a Dec. 21 court filing.
Sullivan & Cromwell LLP (S&C), a New York-based law firm, received $12 million in legal services from West Realm Shires Services Inc. on behalf of FTX. Additionally, the filing confirmed that over the past 90 days, i.e. H. as of August 26, 2022, has paid nearly $3.5 million to S&C.
Excerpt from court filing revealing historical payments made by FTX to S&C law firm. Source: aboutblaw.com
Based on the information provided, FTX paid at least $15.5 million to obtain and retain legal services from S&C. The filing also revealed that S&C currently holds nearly $9 million of the $12 million contingent amount.
Stay safe in Web3. Learn more about Web3 Antivirus →
Following the series of payments, FTX filed for bankruptcy on November 11, which coincided with the resignation of CEO Sam Bankman-Fried. Following the subsequent shutdown of the crypto exchange, FTX investors lost access to funds stored on the exchange.
For some exchanges, regaining investor confidence has meant sharing evidence of the existence of user funds through Proof of Reserve (POR) initiatives. On the other end of the spectrum, Paxful CEO Ray Youssef endorsed the idea of Bitcoin
See also: Crypto Twitter confused by SBF’s $250m bail and a return to luxury
District Judge Ronnie Abrams withdrew her involvement in the FTX case after revealing that a law firm where her husband is a partner advised the 2021 exchange.
While clarifying that her husband was not involved in any of these performances, she added:
“However, to avoid any potential conflict, or the appearance of a conflict, the court hereby evades this action.”
The removal of Judge Abrams from the FTX case was intended to eliminate any conflict of interest in the FTX case.