Cryptocurrency alternate FTX paid a retainer of $12 million to New York legislation agency Sullivan & Cromwell LLP (S&C) earlier than submitting for Chapter 11 chapter in November, in line with a courtroom submitting dated December 21. The fee was made via West Realm Shires Providers Inc. on behalf of FTX for authorized companies, and was meant to safe fee for S&C’s charges and bills.

Over the previous 90 days, FTX has paid an extra $3.5 million to S&C, bringing the entire quantity paid for authorized companies to no less than $15.5 million. The submitting additionally confirmed that S&C presently holds almost $9 million of the $12 million retainer.

The chapter submitting and subsequent shutdown of FTX resulted in traders dropping entry to funds saved on the alternate. In an effort to regain investor confidence, some exchanges have turned to proof-of-reserve (POR) initiatives to supply proof of the existence of customers’ funds. Nevertheless, Paxful CEO Ray Youssef has expressed help for the thought of Bitcoin getting used as a retailer of worth slightly than a method of alternate.

District Choose Ronnie Abrams withdrew from the FTX case after disclosing that her husband, a associate at a legislation agency, had suggested the alternate in 2021. Choose Abrams emphasised that her husband had no involvement within the case and sought to keep away from any look of a battle of curiosity by recusing herself from the motion.