News FTX: The court approves LedgerX sale
The bankrupt cryptocurrency exchange FTX continues to work on cleaning up the consequences of its management’s actions. Here’s what happened this week.
Lawyers are shoveling money
During the first quarter of 2023, FTX lawyers and consultants asked a total of $103 million for their services, the media has learned 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. That amount was $34.2 million in January and $32.5 million in February.
Sullivan & Cromwell’s lawyers had the biggest appetites. The company received $14.1 million in fees in March and $44.4 million in the first three months of the year.
In second place were the specialists of Alvarez & Marsal. The firm asked $13.8 million for its services in March.
Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb’s attorneys requested $3.19 million and $644,000 in March, respectively. They earned $7.3 million and $1.9 million in the first quarter, respectively.
Law firm specialists are cleaning up the Augean stables of FTX corporate documents, participating in the Voyager Digital and Celsius Network litigation, and determining what’s owed to customers of the bankrupt exchange.
Court approves sale of LedgerX
Last week, FTX creditors 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.
The deal needed approval from the U.S. Bankruptcy Court in the District of Delaware to go through. And today, Judge John Dorsey approved the creditors’ motion.
FTX is demanding a $4 billion refund from Genesis
FTX lawyers (you know, those shoveling money) have filed a lawsuit against bankrupt crypto landing platform Genesis. FTX is demanding a $4 billion payout.
Lawyers point out that 90 days before the collapse of Alameda Research lent the company $ 1.8 billion and a mortgage of $ 273 million. In addition, FTX is trying to recover $ 1.6 billion and $ 213 million, which Genesis and its subsidiary company withdrew from the exchange shortly before its collapse.
Genesis Global Capital’s problems began immediately after the FTX problems. In early February, the platform froze withdrawals and new loans. In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy.