Sullivan & Cromwell LLP (S&C) is a New York City-based law firm.
The firm received $12 million in legal fees from West Realm Shires Services Inc. on behalf of FTX.
Based on the information provided, FTX paid at least $15.5 million for S&C's legal services.
As per a court filing dated Dec. 21, the bankrupt crypto exchange FTX paida $12 million retainer to bankruptcy lawyers as security for payment of its fees and expenses during Chapter 11 bankruptcy proceedings.
Sullivan & Cromwell LLP (S&C), a New York City-based law firm, received $12 million in legal fees from West Realm Shires Services Inc. on behalf of FTX. Furthermore, the filing confirmed that FTX paid nearly $3.5 million to S&C over the last 90 days, or since August 26, 2022.
Based on the information provided, FTX paid at least $15.5 million for S&C's legal services. The filing also revealed that S&C currently holds nearly $9 million of the $12 million retainer amount.
Following the series of payments, FTX declared bankruptcy on November 11, along with the resignation of CEO Sam Bankman-Fried. FTX investors lost access to funds stored on the exchange as a result of the subsequent shutdown of the crypto exchange.
Regaining investor confidence for some exchanges meant sharing proof of the existence of users' funds through proof-of-reserve (POR) initiatives. On the other end of the spectrum, Paxful CEO Ray Youssef supports Bitcoin self-custody.
Furthermore, district Judge Ronnie Abrams withdrew her participation in the FTX case after it was revealed that a law firm where her husband works as a partner had advised the 2021 exchange.
She added while clarifying that her husband had no involvement in any of these representations: "Nonetheless, in order to avoid any potential conflict or the appearance of one, the Court withdraws from this action."
The withdrawal of Judge Abrams from the FTX case was intended to eliminate any conflict of interest in the FTX case.
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