Coinspeaker
FTX Incurred More than $121M in Legal and Advisory Fees between February 1 and April 30
The bankrupt cryptocurrency exchange FTX and its sister investment firm Alameda Research are nowhere near making the creditors whole again. With more than $8 billion missing from FTX and Alameda Research’s balance sheet according to John J. Ray III – the acting CEO – the court will not have a ride in the park dividing the remaining assets among hundreds of institutional investors and thousands of retail traders. Moreover, FTX misappropriated investors’ funds in risky bets including political buyouts.
FTX Costly Affairs
According to court filings submitted on June 15 by the current FTX officials, the embattled crypto exchange paid fees of more than $121 million in legal, consulting, and financial services between February 01 and April 30. Interestingly, the law firm representing FTX, Sullivan & Cromwell, received a total of $37.6 million during the said period, thus bagging more than 30 percent of all the FTX fees in the period.
Investment banking firm Jefferies billed approximately 0.6 percent of the total FTX fees and expenses between Feb 01 and April 30, thereby representing the lowest amount. Restructuring consultant firm Alvarez and Marsel charged approximately $37 million, whereby more than $1.1 million was used in expenses that included $51,225 in meals, $149,155 in lodging, and other miscellaneous items amounting to $1,995.
SBF Fights Back
The collapse of FTX and Alameda Research exposed a huge gap in crypto regulation in the United States. With United States regulators deeming the FTX implosion as the largest corporate failure of modern history, the likelihood of Sam Bankman-Fried (SBF) being jailed remains high. As a result, SBF lawyers have been pushing for the judge to drop fraud charges against him.
Meanwhile, SBF is expected to return for a court hearing later this year, when all the investigations will be tabled for the judge to rule on the matter.
Market Outlook
More than six months since the FTX and Alameda Research implosion, reports of reopening have been circulating the internet. Moreover, the FTX exchange has a huge cash balance to fill and make investors whole again. Currently, most digital assets are trading slightly above the FTX capitulation amid fear of increased bearish sentiment.
According to data provided by Binance-backed Coinmarketcap, the total crypto valuation stands at around $1 trillion, with Bitcoin trading at about $26.9k during the early Asian market on Tuesday. The crypto market is, however, facing bearish sentiment following a heightened regulatory crackdown in the United States. Already, Binance and Coinbase Global Inc (NASDAQ: COIN) are under the SEC’s radar for ostensibly selling unregistered securities including Ethereum staking products, Cardano (ADA), Polkadot (DOT), and Solana (SOL) among many others.
FTX Incurred More than $121M in Legal and Advisory Fees between February 1 and April 30
