The bankrupt cryptocurrency exchange FTX continues to work to clean up the consequences of the actions of its management. Here’s what happened this week.
Lawyers rake in money with a shovel
For the first quarter of 2023, FTX lawyers and consultants asked for a total of $103 million for their services. The media learned about this from court documents.
Sullivan & Cromwell, Alvarez & Marshal, AlixPartners, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb requested $36.4 million for their services in March. In January, this amount was $34.2 million, and in February – $32.5 million.
The lawyers of Sullivan & Cromwell turned out to have the biggest appetites. In March, the company received fees in the amount of $14.1 million. And in the first three months of the year, $44.4 million was received.
The specialists of Alvarez & Marsal took the second place. In March, the firm asked for $13.8 million for its services.
Lawyers Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb requested $3.19 million and $644,000 respectively in March. For the first quarter, they earned $7.3 million and $1.9 million, respectively.
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.
Court approves sale of LedgerX
Last week, FTX lenders approved the sale of derivatives trading platform LedgerX to venture capital firm M7 Holdings, a subsidiary of Miami International Holdings. The deal is expected to bring in about $50 million.
For the transaction to take place, it was necessary to obtain the approval of the US Bankruptcy Court in the District of Delaware. And today Judge John Dorsey approved creditor’s petition.
FTX seeks $4 billion refund from Genesis
FTX lawyers (well, the ones who rake in money with a shovel) filed a lawsuit against the bankrupt crypto lending platform Genesis. FTX is asking for $4 billion.
FTX moves to claw back $3.9 billion from Genesis.
1. $2.1 billion loan repayments/collateral pledge
2. $1.8 billion FTX exchange withdrawals pic.twitter.com/1SsW8yoPck— FTX 2.0 shareholder (in spe) (@AFTXcreditor) May 3, 2023
Lawyers are arguing that 90 days before the collapse, Alameda Research provided the company with a $1.8 billion loan and $273 million in collateral. In addition, FTX is trying to recover $1.6 billion and $213 million that Genesis and its subsidiary took off the exchange shortly before its collapse.
Problems at Genesis Global Capital began immediately after the problems of FTX. In early February, the platform froze the withdrawal of funds and the issuance of new loans. In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy.
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