Law Firm Gets $12 Million From FTX Before The Exchange Filed For Bankruptcy

Key Points:

• West Realm Shires Services Inc. paid $12 million to the New York City-based law firm Sullivan & Cromwell LLP (S&C) for legal services on behalf of FTX.
• According to the facts given, FTX must have paid S&C at least $15.5 million to provide legal services for the exchange. The document also showed that S&C is already in possession of over $9 million of the $12 million retainer sum.
• The exchange and Bankman-Fried, its previous boss, are still embroiled in legal issues. He is charged with violating money laundering and political finance regulations.

As security for payment of its fees and expenditures during Chapter 11 bankruptcy proceedings, FTX paid a retainer of $12 million to bankruptcy attorneys.

West Realm Shires Services Inc. paid $12 million to New York City-based law firm Sullivan & Cromwell LLP (S&C) for legal services rendered on behalf of FTX, according to a court document dated December 21. Additionally, the document proved that the exchange paid S&C close to $3.5 million during the previous 90 days, or since August 26, 2022.

According to the facts given, the exchange must have paid S&C at least $15.5 million to provide legal services for FTX. The document also showed that S&C is already in possession of over $9 million of the $12 million retainer sum.

Legal troubles still surround FTX and its former boss, Bankman-Fried. He is accused of breaking campaign finance laws and money laundering.

As Coincu reported, Bankman-Fried was released on a $250 million bail package following his first US court appearance. Former Alameda CEO Caroline Ellison and former FTX Chief Technology Officer Gary Wang, two of Bankman-Fried’s closest associates, entered guilty pleas to fraud and were working with the prosecution.

Ellison testified in federal court in New York that she knew she was acting improperly when she knew misled lenders about how much the company had been borrowed from the defunct FTX cryptocurrency exchange.

US District Judge Ronnie Abrams has resigned from the SBF lawsuit due to a conflict of interest. It appears that Abrams’ spouse is a partner at a law company that provided legal counsel to the cryptocurrency exchange FTX.

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Harold

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