{"id":42697,"date":"2022-12-24T10:44:47","date_gmt":"2022-12-24T14:44:47","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=42697"},"modified":"2022-12-24T10:45:36","modified_gmt":"2022-12-24T14:45:36","slug":"ftx-paid-12m-retainer-to-ny-law-firm-before-bankruptcy-filing","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-paid-12m-retainer-to-ny-law-firm-before-bankruptcy-filing\/","title":{"rendered":"FTX paid $12M retainer to NY law firm before bankruptcy filing"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"h-sullivan-cromwell-llp-s-c-a-law-firm-headquartered-in-new-york-city-received-12-million-on-behalf-of-ftx-for-legal-services\">Sullivan & Cromwell LLP (S&C),<a href=\"https:\/\/coinscreed.com\/staging\/miamicoin-new-york-city-coin-fall-despite-endorsements-from-mayors.html\" target=\"_blank\" rel=\"noreferrer noopener\"> a law firm headquartered in New York City<\/a>, received $12 million on behalf of FTX for legal services.<\/h5>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-1024x576.jpg\" alt=\"FTX paid $12M retainer to NY law firm before bankruptcy filing\" class=\"wp-image-42699\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-1024x576.jpg 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-300x169.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-768x432.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-150x84.jpg 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-750x422.jpg 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000-1140x641.jpg 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">FTX paid $12M retainer to NY law firm before bankruptcy filing<\/figcaption><\/figure>\n\n\n\n<p>According to a court document from December 21 showing the <a href=\"https:\/\/coinscreed.com\/staging\/sec-intends-to-file-separate-accusations-against-ftxs-sbf.html\" target=\"_blank\" rel=\"noreferrer noopener\">defunct cryptocurrency exchange FTX's<\/a> retainer payment to bankruptcy attorneys of $12 million as security for payment of its fees and expenses throughout Chapter 11 bankruptcy proceedings.<\/p>\n\n\n\n<p>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 the crypto exchange. Additionally, the document proved that FTX paid S&C close to $3.5 million during the previous 90 days, or since August 26, 2022.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"357\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-1024x357.webp\" alt=\"\" class=\"wp-image-42700\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-1024x357.webp 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-300x105.webp 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-768x268.webp 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-150x52.webp 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-750x262.webp 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1-1140x398.webp 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/98ec6d74-a5eb-4d9c-9dbb-58fac5d6acd1.webp 1459w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>According to the facts given, FTX must have paid S&C at least $15.5 million to provide legal services for the crypto exchange. The document also showed that S&C is already in possession of over $9 million of the $12 million retainer sum.<\/p>\n\n\n\n<p>Following the series of payments, FTX declared bankruptcy on November 11 along with the departure of the <a href=\"https:\/\/www.google.com\/search?q=FTX+paid+%2412M+retainer+to+NY+law+firm+before+bankruptcy+filing&oq=FTX+paid+%2412M+retainer+to+NY+law+firm+before+bankruptcy+filing&aqs=chrome..69i57j69i61j35i39i362l6.258j0j7&sourceid=chrome&ie=UTF-8\" target=\"_blank\" rel=\"noreferrer noopener\">CEO Sam Bankman-Fried<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>. Investors in FTX lost access to the funds kept on the cryptocurrency exchange as a result of the exchange's subsequent collapse.<\/p>\n\n\n\n<p>In order for some exchanges to reestablish investor confidence, <a href=\"https:\/\/coinscreed.com\/staging\/sec-official-warns-investors-of-crypto-proof-of-reserve-audits.html\" target=\"_blank\" rel=\"noreferrer noopener\">proof-of-reserve <\/a>(POR) initiatives had to be used to publicly display verification of the existence of users' cash.<\/p>\n\n\n\n<p>Paxful CEO Ray Youssef, on the other hand, supported the notion of self-custody for Bitcoin (BTC $16,824).District Judge Ronnie Abrams resigned from the FTX lawsuit after learning that the exchange had been advised by a legal firm where her husband is a partner in 2021. She added: <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cNonetheless, to avoid any possible conflict, or the appearance of one, the Court hereby rescues itself from this action.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>In order to avoid any potential conflicts of interest, Judge Abrams withdrew from the FTX case.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sullivan &#038; Cromwell LLP (S&#038;C), a law firm headquartered in New York City, received $12 million on behalf of FTX for legal services. According to a court document from December 21 showing the defunct cryptocurrency exchange FTX&#8217;s retainer payment to bankruptcy attorneys of $12 million as security for payment of its fees and expenses throughout [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":42699,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[],"class_list":["post-42697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/jpg_20221224_153234_0000.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/42697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=42697"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/42697\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/42699"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=42697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=42697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=42697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}