A document submitted to the court by FTX debtors on Wednesday indicates that the fallen crypto exchange has so far paid the law firms and consultants involved in its bankruptcy case more than $100 million.
As per the document, the law firm Sullivan & Cromwell is the biggest gainer, pocketing $39 million. FTX contracted this company as its restructuring counsel despite the former exchange’s CEO, Sam Bankman-Fried, being against the idea.
Bankman-Fried accused Sullivan & Cromwell of putting pressure on him to file for bankruptcy a few days before FTX’s went crumbling down. The law firm’s involvement in the bankruptcy case has also faced opposition from policymakers Elizabeth Warren, Thom Tillis, Cynthia Lummis, and John Hickenlooper, who argue that FTX’s previous association with Sullivan & Cromwell will make it impossible for the law firm to conduct a proper criminal investigation into its long-time client.
The second-biggest earner is Avalrez & Marsal. FTX hired the company as its financial advisor in the ongoing bankruptcy case. The document shows that Avalrez & Marsal was paid $32.3 million.
The rest of the companies handling FTX’s bankruptcy case pocketed between $250,000 and $6 million. They include Quinn Emanuel Urguhart & Sullivan, Landis Rath & Cobb, Jefferies LLC, Kroll, and AlixPartners.
FTX Still Holds Over $2B in the Bank
The FTX debtors’ document indicates that the exchange’s four siloes collectively hold more than $2 billion. Here is a breakdown of how much each silo is holding:
Alameda silo has $870 billion in various unnamed banks. It comprises the trading company Alameda Research along with its subsidiaries. West Realm Shire silo, which consists of Ledger X and FTX US, has $600 million held in several banks. Dotcom Silo has $400 million. It includes FTX.com. And finally, FTX Ventures silo holds $153 million in multiple banks.
The FTX debtors did not disclose the names of the banks holding the funds. The only known banking partner of the exchange is Signature Bank, but it has since gone under. Before its downfall, Signature Bank was accused of helping FTX to commingle customer funds via its Signet platform.
FTX Earns $105 Million
The document further shows that the fallen exchange sold its shares in four companies, generating over $105 million. These firms include Mysten Labs ($96.4 million), VY Space ($8 million), Keygen Labs ($500,000), and Anysphere ($200,000).
FTX debtors stated in the document that the exchange made payments totaling $44 million in April, although the recipients’ names were not mentioned.
They further revealed that FTX is only left with 107 employees, who collectively pocketed $386,000 in April. Before its collapse, the exchange had over 330 employees.
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