Relationship Between FTX And Law Firm Thickens The Plot

The FTX scandal has taken a new turn as the plot continues to thicken…

New reports indicate that FTX paid law firm Sullivan & Cromwell roughly $12 million in legal fees to retain the firm as legal counsel 3 months before their bankruptcy filing.

Sullivan & Cromwell specializes in a variety of legal practices including bankruptcy law…

A timeline of payments to Sullivan & Cromwell from FTX indicates that the first payment was made to the legal firm on August 26th, 2022:

Hussein Faraj provided more insight and details on the relationship between FTX and Sullivan & Cromwell:

FTX paid a retainer of $12 million to bankruptcy lawyers as security for payment of its fees and expenses amid Chapter 11 bankruptcy proceedings, shows a court filing dated Dec. 21.

Sullivan & Cromwell LLP (S&C), a law firm headquartered in New York City, received $12 million

— Hussein Faraj (@nugenmediahub) December 24, 2022

FTX locked in its bankruptcy attorneys with $12 million retainer before filing for Chapter 11, It made its first payment to the firm almost three months prior to filing
FTX filed for bankruptcy on Nov. 11. its retainer was paid on Aug. 26
Sam trabucco steps down 2 days earlier.

— Hussein Faraj (@nugenmediahub) December 24, 2022

Coin Telegraph reports:

Based on the information provided, FTX paid at least $15.5 million to avail and retain the legal services of S&C. The filing further revealed that S&C currently holds nearly $9 million of the $12 million retainer amount.

 

Law firm Sullivan & Cromwell is representing FTX in its Chapter 11 case + guiding its efforts to return assets to customers. FTX asked the federal judge overseeing the case for approval to pay the firm's partners and special counsel between $1,575 and $2,165 / hr for their work.

— Alex Shteynshlyuger MD (@DrAlexUrology) December 25, 2022

ALM Law featured this curious bit of news:

Before he was arrested in the Bahamas on Monday, FTX founder Sam Bankman-Fried had planned to give congressional testimony the following day alleging that Sullivan & Cromwell attorneys pressured him, his co-workers, family, and friends to get the embattled founder to seek Chapter 11 bankruptcy protection.

Citing the $700 million in legal fees generated by the Enron bankruptcy, which Ray and Sullivan & Cromwell also handled, Bankman-Fried implied that Miller coordinated with Ray and Sullivan & Cromwell to get the firm signed on as lead bankruptcy counsel.

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