Gokil, Crypto Company FTX Pays Legal Firms Of IDR 564 Billion

JAKARTA - FTX and Alameda Research, two crypto companies that went bankrupt, were unable to return the money to their creditors. It is estimated that by the end of this year, Sam Bankman-Fried (SBF) will return to attend court hearings to decide the fate of the company.

FTX allegedly misused investor funds in risky bets, including its donation to the world of politics. The amount of money lost from the financial balance of FTX and Alameda Research reached more than US$8 billion (equivalent to Rp120 trillion), so the court will face difficulties in dividing remaining assets among hundreds of institutional investors and thousands of retail traders.

In court filings made by FTX officials, it was revealed that they had paid more than US$ 121 million (Rp1.8 trillion) for legal services, consultations, and finance between February and April. The legal firm representing FTX, Sullivan & Cromwell, received a payment of US$37.6 million (Rp564 billion), which is more than 30 percent of all FTX costs in that period.

Then, Jefferies, an investment banking company, and Alvarez and Marsal, a restructuring consulting firm, also made payments, although the numbers were lower than Sullivan & Cromwell.

The collapse of FTX and Alameda Research shows a gap in cryptocurrency regulation in the United States. With US regulators view this incident as the failure of the largest company in modern history, it is likely that SBF will be sentenced to imprisonment is still wide open.

Even so, SBF lawyers are trying to overturn allegations of fraud aimed at his client. The upcoming court hearing is expected to provide a decision regarding this matter once all investigations are resolved.

Although FTX and Alameda Research failed, in recent months reports have surfaced about plans to reopen these two companies. FTX has a large cash balance and is expected to restore investor confidence.