FTX News: Lawyers’ Appetite Grows, New Management Scrambles to Understand What Happened

The trial of the bankrupt cryptocurrency exchange FTX is due to take place in the fall, but the fate of the money and the former CEO of the company, Sam Bankman-Freed, will continue to excite the cryptans.

Lawyers work tirelessly

Today it became known about the amount of fees of lawyers involved in the affairs of the exchange. February legal costs exceeded $30 million, the publication reports. The Block with a link to the report.

The due fees were demanded by professionals from Sullivan & Cromwell, Landis Rath & Cobb, AlixPartners, Perella Weinberg Partners, Alvarez & Marsal North America and Owl Hill Advisory. In total, lawyers spent 35,400 hours on FTX issues in February. Sullivan & Cromwell scored the most. According to the invoices, they earned $13.5 million in 12,127 hours. Plus $82,000 must be paid in compensation for expenses.

Sullivan & Cromwell priced their work, as they did in January, at $2,165 an hour.

Alvarez & Marsal North America billed $12 million for 17,000 hours of work, adding $229,000 in expenses, Landis Rath and Cobb asked for $583,000 for 874 hours and $11,000 in expenses, AlixPartners valued their services at $3 million and $5,000 in expenses .

In January, law firms were less busy, so they asked for a total of only $20 million for their services. As we can see, the appetites of lawyers are growing, but the work is not getting smaller.

Law firms clean up the Augean stables of FTX corporate documents, participate in Voyager Digital and Celsius Network litigation, and determine what is owed to clients of a bankrupt exchange.

New information about the organization of work in FTX

New FTX management issued a report, which should shed light on the reasons for the collapse of the crypto empire. The 45-page document is based on the analysis of a huge amount of data and more than a million documents. It also includes interviews conducted with 19 former FTX employees.

The report talks about the company’s lack of risk management, inadequate record keeping, poor cybersecurity, and too much of Sam Bankman Freed’s role in all decision making. In general, a small top of the company’s top managers carried out total supervision, while not systematizing work processes in any way. It was run by inexperienced fresh-college executives Sam Bankman-Fried, Gary Wang, and former FTX CTO Nishad Singh.

FTX’s current CEO John Ray III noted that the FTX Group “failed to put in place appropriate controls in areas that were critical to protecting clients’ money and crypto assets.”

In general, nothing new, but the document turned out to be curious.

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