Sam Bankman-Fried's FTX: $20.3 Million Paid to Lawyers During Initial Bankruptcy Months

The collapse of FTX, orchestrated by Sam Bankman-Fried, sent shockwaves through the cryptocurrency world. Now, details are emerging about the hefty sums paid to legal teams in the aftermath. According to filings in the Bankruptcy Court for the District of Delaware, the exchange had to pay $20.3 million to the consultants and lawyers during the initial bankruptcy months.

This revelation comes amidst ongoing legal battles and scrutiny of Bankman-Fried's actions. Sam Bankman-Fried was sentenced to 25 years in prison on Thursday over his conviction on fraud charges stemming from the dramatic collapse of the FTX exchange. The exorbitant legal fees raise questions about where the money came from and how it was allocated, considering the substantial losses incurred by FTX customers.

Adding further complexity, Cryptocurrency exchange FTX's former top lawyer testified on Thursday that its founder, Sam Bankman-Fried, asked him to come up with legal justifications for why it was [acceptable to do a certain action]. This underscores the potential for legal maneuvering even as the company faced imminent collapse.

Despite the evidence and his conviction, Sam Bankman-Fried is delusional in claiming the possibility customers of now-bankrupt FTX cryptocurrency exchange may recover funds means he did not steal, a statement that further fuels the anger and frustration of those who lost their investments. The $20.3 million paid to lawyers during FTX's initial bankruptcy months is a stark reminder of the financial fallout and the complex legal challenges surrounding the exchange's downfall.