Former SEC Official John Reed Stark has reasons to think that the FTX <\/span>reorganization plan<\/span><\/a> might be a means to get richer for the legal team behind the <\/span>bankruptcy process<\/span><\/a>.<\/span><\/p>\n According to the ex-SEC veteran, every FTX customer deserves a \u201cThank You\u201d note from members of the defunct exchange\u2019s legal bankruptcy team. His sarcastic statement was a result of the exorbitant profit made off of FTX during its bankruptcy proceedings. Much more, Stark stated that each member of the team can now probably afford to buy a new beach house in 2024.\u00a0<\/span><\/p>\n <\/p>\n For context, Stark claimed that he had earlier predicted that the Chapter 11 FTX reorganization plan was never going to happen. He compared reorganizing FTX to attempting to \u201creorganize a cross between Murder Incorporated, The Cali Drug Cartel and Madoff Investment Advisory Services.\u201d To this end, he probably did not think investing in the legal team was necessary.<\/span><\/p>\n FTX Goes Chapter 7 \u2014 and FTX Bankruptcy Lawyers Are Probably Heading to the Beach in 2024<\/p>\n The FTX bankruptcy team\u2019s lawyers should send thank you notes to all FTX customers. Why? Because thanks to the FTX customers, each member of the FTX legal bankruptcy team can now probably\u2026 pic.twitter.com\/P89w5tS54y<\/a><\/p>\n <\/p>\n \u2014 John Reed Stark (@JohnReedStark) February 3, 2024<\/a><\/p>\n<\/blockquote>\n Some of the individuals and institutions involved in the FTX bankruptcy process are charged as high as $1800 per hour. While some even ask for as much as $2375 per hour. With this kind of outrageous fees, they could have earned up to a cumulative of $1.5 million in fees per day.\u00a0<\/span><\/p>\n <\/p>\n Since the bankruptcy process started earlier in 2023 till around November 2023, these experts have generated as much as $250 million from FTX. Between August and October 2023, FTX received an invoice of $118.1 million from its legal representative for its bankruptcy.<\/span><\/p>\n The pro-crypto billionaire\u00a0 Mark Cuban also believes that the team was very much aware that the proposed FTX reorganization plan did not stand a chance. Still, he claimed that they kept pushing the narrative that the beleaguered exchange could victoriously return and become a regulated financial institution.\u00a0<\/span><\/p>\n The reality has finally dawned on the entire community as the exchange is looking at abandoning its plan to restart the company.<\/span><\/p>\n <\/p>\n Ultimately, it has been discovered that legal fees incurred during the bankruptcy proceedings <\/span>cost more than the repayment<\/span><\/a> that is supposed to be made to creditors as part of the FTX reorganization plan. The exchange still plans to <\/span>repay creditors in full<\/span><\/a> but it\u2019s not yet certain how feasible this will be especially with the exorbitant legal fees incurred thus far.<\/span><\/p>\n Noteworthy, some of FTX\u2019s legal representatives in its bankruptcy proceedings are Alvarez and Marshall and Sullivan & Cromwell LLP. Alixpartners LLP and Quinn Emanuel Urquhart & Sullivan also provided specialized service to FTX.<\/span><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n <\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\nFTX Reorganization Plans Unnecessary<\/strong><\/h2>\n
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Exorbitant Fees Could Hinder FTX Repayment Plans<\/strong><\/h2>\n
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