Defunct crypto alternate FTX paid a retainer of $12 million to chapter legal professionals as safety for fee of its charges and bills amid Chapter 11 chapter proceedings, reveals a court docket submitting dated Dec. 21.

Sullivan & Cromwell LLP (S&C), a regulation agency headquartered in New York Metropolis, acquired $12 million from West Realm Shires Companies Inc. on behalf of FTX for authorized companies. As well as, the filing confirmed that over the previous 90 days, i.e., since Aug. 26, 2022, FTX paid almost $3.5 million to S&C.

Primarily based on the knowledge supplied, FTX paid at the least $15.5 million to avail and retain the authorized companies of S&C. The submitting additional revealed that S&C presently holds almost $9 million of the $12 million retainer quantity.

Following the sequence of funds, FTX filed for chapter on Nov. 11, which was accompanied by the CEO Sam Bankman-Fried’s resignation. Because of the following shutdown of the crypto alternate, FTX traders misplaced entry to the funds saved on the alternate.

For some exchanges, regaining investor confidence meant sharing proof of the existence of customers’ funds through proof-of-reserve (POR) initiatives. On the opposite finish of the spectrum, Paxful CEO Ray Youssef, sided with the thought of Bitcoin (BTC) self-custody.

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District Choose Ronnie Abrams withdrew her participation from the FTX case after revealing {that a} regulation agency, the place her husband works as a associate, had suggested the alternate in 2021.

Whereas clarifying that her husband had no involvement in any of those representations, she added:

“Nonetheless, to keep away from any attainable battle, or the looks of 1, the Courtroom hereby rescues itself from this motion.”

Choose Abrams’ withdrawal from the FTX case was aimed toward eradicating any battle of curiosity within the FTX case.