FTX Spent $12M To Retain Its Legal Representative Sulivan & Cromwell LLP
Recently, West Realm Shires reportedly sent about $12 million as payment for legal services rendered to FTX by Sulivan & Cromwell LLP (S&C). FTX has paid about $15.5 million to the law firm for its services since August, according to a report.
FTX Paid S&C Law Firm About $15.5 Million
The effect of the fall of FTX is still rocking the crypto market rigorously. US authorities subjected the crypto firm and everyone involved in the crash to intense investigation and court charges to find the cause of the collapse.
To defend itself during the proceedings, FTX hired the services of Sullivan & Cromwell LLP (S&C), a New York City-based law firm. In addition, FTX exchange reportedly paid $12 million through its associate firm, West Realm Shires Services Inc.
The $12 million serves as a retainer fee required for S&C to continue representing the collapsed crypto firm. In addition, the filing confirmed that over 90 days, counting from August 26, 2022, FTX paid nearly $3.5 million to S&C.
Furthermore, the payment history between the two firms revealed that S&C had received a minimum of $15.5 million from FTX since it was hired on August 26, 2021. In addition, the report revealed that out of the recent $12M, only $9 million had been received by Sullivan & Cromwell LLP.
American Authorities Determined To Catch The FTX Collapse Perpetrators
Following the domino effects of the Terra network and 3-Arrows Capital’s crash earlier this year, FTX filed for bankruptcy in November. In addition, Sam Bankman-Fried, the former CEO of FTX, resigned afterward, crushing all hopes of investors getting their funds back.
The weeks after FTX’s insolvency had been quite eventful and plagued with several legal hearings and investigations. The Securities and Exchange Commission (SEC), Commodities and Future Trading Commission CFTC, and other authorities joined hands to prosecute everyone involved in the case.
The case caused a lot of regulators to clamor for a crypto regulatory framework that would protect users’ investments. In addition, the recurrent fall of the centralized crypto exchanges had downgraded investors’ trust in the sector.
Many exchanges initiated the proof of reserve protocol to boost investors’ confidence. This protocol requires users to publicize their reserve capacity, showing evidence.
Thus, the transaction of the crypto firm would become more transparent, and it would encourage investors to trust the platform.
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