The FTX debtors said they had paid the 14 consulting firms and law firms handling their bankruptcy case more than $100 million as of April 30, according to a May 30 court filing.
Sullivan & Cromwell is the main source of income
According to the filing, FTX paid the law firm Sullivan & Cromwell (S&C) $39.58 million for its services, making it the top earner among these firms.
S&C is the company’s restructuring advisor and has played an active role in the FTX bankruptcy case. The law firm previously described its services for the bankruptcy exchange as “one of the most complicated multi-disciplinary exercises of any law firm.”
Initially, the firm ran into stiff opposition from Sam Bankman-Fried, who accused the law firm of pressuring him to file for bankruptcy in the days after the FTX implosion. S&C’s involvement in the proceedings has also been challenged by US lawmakers Thom Tillis, Elizabeth Warren, John Hickenlooper and Cynthia Lummis, who cited their previous relationship with FTX in a letter sent to the court on January 9.
Another top earner in the FTX bankruptcy case is Alvarez & Marsal North America, which is acting as financial counsel in the bankruptcy case. The firm has earned $32.7 million.
Others like Landis Rath & Cobb, Quinn Emanuel Urquhart & Sullivan, AlixPartners, Kroll, Jefferies LLC and others have earned between $257,149 and $5.01 million.
FTX has $2.03B in the bank
Debtors of the FTX bankruptcy reported that the bankrupt crypto empire’s four silos had $2.03 billion in unnamed banks as of April 30.
A breakdown of these bank account balances showed that the Alameda silo, which comprises the main trading firm Alameda Research and its subsidiaries, had $877.28 billion in banks. By contrast, the West Realm Shires silo, which includes FTX US and Ledger X, had $599.01 billion in the banks.
The Dotcom silo, which comprises FTX.com and other exchanges, had $407.99 billion in banks, while FTX Ventures had $154.55 billion in these traditional financial institutions.
Source: FTX Fifth Interim Financial Update
Additionally, Deck Technologies, Inc, a separate entity and not one of the four silos that make up FTX’s main accounts, has $144,204 in banks.
FTX debtors said they held foreign currency accounts at numerous entities. The bankrupt company did not provide further information about the names of these banks or the amount they held at each.
The reports revealed the ties of several US banks to the bankrupt exchange earlier in the year. One lawsuit alleged that the defunct Signature Bank aided and abetted FTX fraud by “allowing” the pooling of the exchange’s user funds through its Signet network.
FTX made $105 million
The financial statement further showed that the bankrupt company made $105.32 million through the sale of four different assets.
According to the filing, the exchange earned $96.25 million from sales of its equity and token position in Mysten Labs’ SUI tokens. CryptoSlate reported that the bankrupt exchange had undervalued its SUI holdings by approximately 1000 times, as the tokens would have been worth more than $1 billion.
Source: FTX Fifth Interim Financial Update
Meanwhile, the company sold its fund position in VY Space for $8.3 million on April 25 and its equity position in Keygen Labs and Anysphere for $500,000 and $200,000, respectively.
other updates
According to the court filing, FTX made $44.02 million in disbursements in April. The filing did not include details about when these payments were made and to whom they were made.
Source: FTX Fifth Interim Financial Update
In addition, FTX said it has 107 full-time employees, down from the 320 employees it had when it filed for bankruptcy and paid a total post-petition tax of $386,033 in April.
This post FTX has paid out more than $100 million to attorneys and consultants handling its bankruptcy case
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