Defunct crypto exchange 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 from West Realm Shires Services Inc. on behalf of FTX for legal services. In addition, the filing confirmed that over the past 90 days, i.e., since Aug. 26, 2022, FTX paid nearly $3.5 million to S&C. Based on the information provided, FTX paid at least $15.5 million to avail and …

The ongoing legal proceedings around former FTX CEO Sam Bankman-Fried (SBF) took a new turn as District Judge Ronnie Abrams withdrew her participation from the case. The United States District Court for the Southern District of New York rescued itself from the FTX case after revealing that a law firm — which employs Abrams’ husband as a partner — had advised the crypto exchange in 2021. In a Dec. 23 filing, Judge Abrams revealed that her husband, Greg Andres, is a partner at Davis Polk & Wardwell, a law firm where he has been employed since June 2019. Additionally, it …

From an outside perspective, 2022 has been a rollercoaster ride for crypto. The market reached a total valuation of $3 trillion during the bull market of 2021, only to scale back to its current level of around $810 billion. While this poor performance can be partly attributed to the pervading macroeconomic environment — compounded by rising inflation rates and the ongoing Ukraine-Russia conflict, among other factors — one cannot deny the role that the recent slew of insolvencies has had on the sector. That said, below is a list of arguably the most notable heroes and villains who have undeniably …

Caroline Ellison, the former chief executive officer of Alameda Research, said as part of her plea deal that she was aware FTX funds had been made available for the venture capital firm’s investments. In a transcript of proceedings for her plea deal in the Southern District of New York released on Dec. 23, Ellison acknowledged the financial ties between FTX and Alameda at the center of prosecutors’ case against former FTX CEO Sam Bankman-Fried. According to the former Alameda CEO, Alameda had access to a “borrowing facility" through FTX from 2019 to 2022. “I understood that FTX executives had implemented …

Never underestimate how quickly things can deteriorate in a sector as volatile as crypto, especially in a bear market. Prices can always go lower in the depts of crypto winter and casualties can multiply overnight. 2022 has been a year of never-ending contagion; with everyone focused on Binance, high-profile Bitcoin (BTC) miners were going bust. This week, mining company Core Scientific filed for Chapter 11 bankruptcy. Greenridge, another miner, received a $74 million debt restructuring lifeline from New York Digital Investment Group. Bitcoin is the most valuable commodity in a bear market, but miners must keep the lights on. The …

Embattled crypto exchange FTX asked for the assistance of a United States bankruptcy judge to prevent crypto lending firm BlockFi from claiming around $450 million worth of Robinhood shares purchased by its former CEO Sam Bankman-Fried. On Nov. 28, BlockFi filed a lawsuit demanding Emergent Fidelity Technologies, Bankman-Fried's holding company, to turn over 56 million Robinhood Markets shares. The stocks were allegedly put up as collateral for BlockFi's loans to crypto trading firm Alameda Research. Both FTX and Alameda filed for bankruptcy before settling the BlockFi loans. However, FTX argued through a filing in a US bankruptcy court that the …

Crypto Twitter has seemingly taken issue with Sam Bankman-Fried’s $250 million bail bond, allowing him to spend Christmas in his parent’s Palo Alto home without paying a single dime upfront. The former FTX CEO arrived in New York from the Bahamas on Dec. 21 and appeared in court on Dec. 22 where he was released on bail via a “personal recognizance bond” — essentially a written promise from the defendant that they will show up for future court appearances and not engage in any illegal activity while out on bail. According to the release agreement filed on Dec. 22, no …

The last year has been an eventful one for the crypto space. The collapse of the Terra ecosystem and its TerraUSD (UST) algorithmic stablecoin saw $50 billion wiped off the market in a flash. And more recently, FTX, an exchange many thought was “too big to fail,” came crashing down. There’s been no shortage of drama in the space, which has seen name-stay businesses and projects disappear along with investors’ funds. Given the events of this year, it’s inevitable that serious government attention is coming for the space, in every major jurisdiction — and on the time scale of a …

After taking pitches from many law firms, the nine-member committee representing unsecured creditors of the disgraced crypto exchange FTX has decided on a legal adviser, the Wall Street Journal reported on Dec. 21. Global law firm Paul Hastings LLP was hired to look after the interests of unsecured creditors in the bankruptcy case, including millions of FTX's customers. According to sources from the newspaper, a process to select a financial adviser is also underway. The committee of FTX creditors was appointed on Dec. 16 by the U.S. Justice Department. Its members include companies in the cryptocurrency sector, such as Pulsar …

Sam Bankman-Fried, the former CEO of FTX now facing criminal charges that could land him in jail for the rest of his life, may be granted bail in the United States ahead of his trail, Reuters reported Dec. 21. Prosecutor Nicholas Roos has reportedly proposed granting Bankman-Fried, often referred to as SBF, bail on the conditions of a $250 million bond, home detention, location monitoring and the surrender of his passport. The New York Times reported that SBF’s bail was approved and he will live with his parents in Palo Alto, California. His parents secured his bail with the equity …

Former FTX CEO Sam Bankman-Fried, who was remanded to the notorious Fox Hill Prison in Nassau, Bahamas, pending an investigation into the collapse of his exchange, had a different experience than many other prisoners. According to the Financial Times, Bankman-Fried was held in the sickbay where he had access to a toilet, running water, a TV, local newspapers, crossword puzzles, and many other perks, including vegan food. Anonymous prison officials disclosed that the former CEO spent his days watching the news and reading articles about himself. SBF’s prison experience appears to have been very different from what many other prisoners …

More than one million creditors of failed crypto exchange FTX have been waiting to be made whole since before the firm’s bankruptcy filing on Nov. 11, but according to one expert, recipients of donations and contributions may have a legal means of returning the funds directly to investors and customers. Louise Abbott, a partner at United Kingdom-based firm Keystone Law, told Cointelegraph it was “extremely unlikely” FTX would have a legal leg to stand on in its demands for the voluntary return of political campaign donations, grants, and other contributions the firm made prior to its bankruptcy. However, many individuals …