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News

FTX Spent Over $120M In Legal Fees From February To April This Year: Report

June 20, 2023 - Around 2 mins mins to read

Key Points:

  • Insolvent crypto firm FTX used $121.8 million to pay out lawsuits between February and April.
  • Of those, the law firm Sullivan & Cromwell collected $37.6 million in fees for the period, representing 30.9% of total fees and expenses.
  • The cost of the bankruptcy process is prompting some old customers to restart the exchange under new leadership to bring value to the customers.
According to information collated by The Block Research, FTX advisers’ filings from June 15 indicate fees and costs between February 1 and April 30 totaling $121.8 million.
FTX Spent Over $120M In Legal Fees From February To April This Year: Report

Of those, the law firm Sullivan & Cromwell collected $37.6 million in fees for the period, representing 30.9% of total fees and expenses. Investment bank Jefferies charges as low as 0.6% of total fees and expenses.

Restructuring consultants at Alvarez and Marsel charged $37 million with over $1.1 million in expenses, including $51,225 in meals, $149,155 in accommodation, and other miscellaneous up to $1,995.

Rising costs due to the bankruptcy of FTX are prompting some old customers to relaunch the exchange under new leadership to bring value to customers. One potential option discussed is for FTX creditors to convert part of their holdings into shares in a reopened exchange.

FTX’s lead attorney said that if that route were to be taken, the plan would need to raise significant capital and said there had been internal debate over whether that funding should come from FTX real estate’s capital or third-party capital.

In an unexpected twist, FTX was able to return money to its customers thanks to an explosion of AI. According to financial tables reviewed by the Financial Times for 2022, FTX already owns a stake in AI startup Anthropic, which was worth around $500 million.

FTX Spent Over $120M In Legal Fees From February To April This Year: Report
Source: Financial Times

While it’s unclear if that specific number is accurate or the Anthropic market share it constitutes, the reality is that the business is currently valued at $4.6 billion – with the potential to soar due to the frenzy has taken over the industry after the boom started with the launch of ChatGPT 3.5 in the fall of 2022.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

News

FTX Spent Over $120M In Legal Fees From February To April This Year: Report

Key Points:

  • Insolvent crypto firm FTX used $121.8 million to pay out lawsuits between February and April.
  • Of those, the law firm Sullivan & Cromwell collected $37.6 million in fees for the period, representing 30.9% of total fees and expenses.
  • The cost of the bankruptcy process is prompting some old customers to restart the exchange under new leadership to bring value to the customers.
According to information collated by The Block Research, FTX advisers’ filings from June 15 indicate fees and costs between February 1 and April 30 totaling $121.8 million.
FTX Spent Over $120M In Legal Fees From February To April This Year: Report

Of those, the law firm Sullivan & Cromwell collected $37.6 million in fees for the period, representing 30.9% of total fees and expenses. Investment bank Jefferies charges as low as 0.6% of total fees and expenses.

Restructuring consultants at Alvarez and Marsel charged $37 million with over $1.1 million in expenses, including $51,225 in meals, $149,155 in accommodation, and other miscellaneous up to $1,995.

Rising costs due to the bankruptcy of FTX are prompting some old customers to relaunch the exchange under new leadership to bring value to customers. One potential option discussed is for FTX creditors to convert part of their holdings into shares in a reopened exchange.

FTX’s lead attorney said that if that route were to be taken, the plan would need to raise significant capital and said there had been internal debate over whether that funding should come from FTX real estate’s capital or third-party capital.

In an unexpected twist, FTX was able to return money to its customers thanks to an explosion of AI. According to financial tables reviewed by the Financial Times for 2022, FTX already owns a stake in AI startup Anthropic, which was worth around $500 million.

FTX Spent Over $120M In Legal Fees From February To April This Year: Report
Source: Financial Times

While it’s unclear if that specific number is accurate or the Anthropic market share it constitutes, the reality is that the business is currently valued at $4.6 billion – with the potential to soar due to the frenzy has taken over the industry after the boom started with the launch of ChatGPT 3.5 in the fall of 2022.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News