Bankrupt FTX Spends $120 Million In Two Months, Where Did The Money Go?

It has now been seven months since FTX change filed for chapter after an enormous financial institution run and billions of {dollars} price of consumer and creditor funds are nonetheless caught on the platform. Because the chapter unfolds, the change appears to be bleeding much more cash with none of it going again to collectors. So what’s FTX spending hundreds of thousands of {dollars} on?

$120 Million Spent In Two Months

A report by The Block has revealed that the bankrupt FTX change spent a complete of $121.8 million within the area of two months. The information which spans between February 1 and April 30 reveals that this cash went to varied aspects together with “authorized, consulting and monetary companies charges and bills.”

A big chunk of this quantity went to the Alvarez and Marsel restructuring consultants who acquired a complete of $37 million. Much more attention-grabbing is the truth that they acquired greater than $1.1 million for bills alone. These bills ranged from lodging and meals, coming in at $149,155 and $51,225, respectively. In addition to $1,995 in what’s marked as miscellaneous spending.

One other $37.6 million went to the lawyer at Sullivan & Cromwell, which is the legislation agency representing the defunct crypto change. This quantity included all charges and bills for the legislation agency. One agency named FTI Consulting acquired $761,991.70 for 686.8 hours of labor below the billing title “Alternate restart” fueling rumors that the FTX change could possibly be again up and operating sooner or later.

Going by the information on this report, it appears that evidently FTX is spending a mean of $60 million monthly, whereas customers and collectors nonetheless have their funds caught on the change.

FTT worth struggles under $1 | Supply: FTTBUSD on TradingView.com

The Notorious FTX Trial

Founder and former CEO of the FTX change, Sam Bankman-Fried aka SBF, was arrested late final yr in December within the Bahamas and extradited to the USA. After preliminary hearings, the founder’s trial has been scheduled to start in October for quite a few fees together with misappropriation of buyer and investor funds, amongst others.

As for Sam Bankman-Fried, the founder has denied any allegations of fraud regardless of his co-founder Gary Wang, and Caroline Ellison, ex-CEO of Alameda Analysis, pleading responsible to fraud fees. SBF maintains that there was no fraud occurring however somewhat that they made administration errors which ultimately led to the collapse of the change.

Bankman-Fried’s lawyer moved to have 10 of the 13 prison fees that have been levied towards the founder dismissed again in Could. However a June 14 submitting reveals that the fees have been lowered to the eight fees that have been initially filed towards him in 2022, with 5 fees suspended.

Nonetheless, this doesn’t have an effect on the timeline as prosecutors revealed they have been on observe to proceed with the trial as scheduled carrying ahead with the eight authentic fees.