FTX lawyers cost the disgraced crypto firm $38 million for Jan alone, with new CEO John Ray III billing $305,565 for Feb
Per BI
After the collapse of FTX, the disgraced crypto firm had to employ hundreds of lawyers, consultants, and accountants, among others, to investigate what happened. In January alone, the crypto firm was billed $38 million for the services of the hundreds hired.
CoinDesk cited court records showing how law firm Sullivan & Cromwell was counsel. Other retains include special counsel for the proceedings, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb.
The report revealed that the three firms have a combined 180 lawyers and more than 50 other staff for the FTX case.
Here are the billings for the three firms.
- Sullivan & Cromwell - $16.8 billion for January
- Quinn Emanuel Urquhart & Sullivan - $1.4 million
- Landis Rath & Cobb - $663,995
Sullivan & Cromwell reportedly worked for 14,569 hours compiled in January. In November, they submitted a bill for $7.5 million after working for the first 19 days of the bankruptcy.
While Sam Bankman-Fried is now facing investigation, with his trial expected to start later this year, FTX is now being run by John Ray III. The current CEO billed $305,565 for February alone.
By November, FTX founder Sam Bankman-Fried tried to stall bankruptcy proceedings in the US to transfer assets from his crypto exchange to foreign regulators, per the DOJ. During that time, SBF allowed Bahamian customers to withdraw millions even after FTX froze customer accounts.
In early February, SBF was barred from contacting ex-employees through the Signal app. The app is an encrypted messaging tool that gained popularity after WhatsApp wanted to update its service terms.
The decision to stop SBF from using Signal came from US District Judge Lewis Kaplan to address concerns about the former CEO trying to tamper with witnesses. Manhattan federal prosecutors said that SBF could potentially destroy important case evidence.
See flow at unusualwhales.com/flow.
Other News:
- FTX founder Sam Bankman-Fried attempted to stall bankruptcy proceedings in the U.S. in November in order to transfer assets from his crypto exchange to foreign regulators
- SBF Barred From Using Signal to Contact Ex-Employees
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