Cryptocurrency change FTX paid a retainer of $12 million to New York legislation agency Sullivan & Cromwell LLP (S&C) earlier than submitting for Chapter 11 chapter in November, in keeping with a courtroom submitting dated December 21. The cost was made by West Realm Shires Providers Inc. on behalf of FTX for authorized providers, and was supposed to safe cost for S&C’s charges and bills.

Over the previous 90 days, FTX has paid an extra $3.5 million to S&C, bringing the whole quantity paid for authorized providers to not less than $15.5 million. The submitting additionally confirmed that S&C at present holds practically $9 million of the $12 million retainer.

The chapter submitting and subsequent shutdown of FTX resulted in traders dropping entry to funds saved on the change. In an effort to regain investor confidence, some exchanges have turned to proof-of-reserve (POR) initiatives to supply proof of the existence of customers’ funds. Nonetheless, Paxful CEO Ray Youssef has expressed assist for the thought of Bitcoin getting used as a retailer of worth somewhat than a method of change.

District Choose Ronnie Abrams withdrew from the FTX case after disclosing that her husband, a associate at a legislation agency, had suggested the change in 2021. Choose Abrams emphasised that her husband had no involvement within the case and sought to keep away from any look of a battle of curiosity by recusing herself from the motion.