FTXs legal team from Sullivan & Cromwell has 150 people on the bankruptcy case, with thirty partners reportedly charging more than $2,000 per hour. 566 Total views 64 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT According to a new report, the controversial law firm Sullivan & Cromwell is on track to reap a fortune from its work on the FTX cryptocurrency exchanges bankruptcy case.
Sullivan & Cromwells costs in the FTX case are estimated to reach hundreds of millions of dollars before the firms bankruptcy investigation is over, Bloomberg Law reported on Jan. 27.
As the FTX trial is scheduled for October 2023, the firms lawyers now have about eight months to untangle the complicated FTX case, which will cost a lot of time and money. Sullivan & Cromwell has more than 150 people working on the FTX case, including 30 partners with rates exceeding 2,000 per hour. The report notes that associates are charging up to about $1,500 per hour, citing a court filing.Source: Bloomberg Law
In a court declaration, Sullivan & Cromwell said that its proposed fees are in accordance with market rates by other leading law firms and actually represent a discount from the rates used in non-bankruptcy matters.
Bankruptcy experts have been facing a high demand as the crypto winter of 2022 generated many bankruptcy filings, including those by major crypto firms like Genesis Global Trading, Celsius Network and Voyager Digital.
According to Jonathan Lipson, a Temple University law professor, lawyers are going to do very well in cases like FTX, just as the professionals have done very well in other big cases. For example, New York-based law firm Weil Gotshal made about $500 million in fees from the bankruptcy of Lehman Brothers in 2008.
Lipson said that such big expenses can be justified as Sullivan & Cromwell can potentially help investigators recover money from FTX, stating:The important question is never are the lawyers charging a lot. Its, is it worth it? If they can recover a lot of money, then its probably worth it.
The news comes shortly after FTX bankruptcy judge John T. Dorsey on Jan. 19 approved Sullivan & Cromwells retention as FTXs legal team despite controversy about the firm allegedly having potential conflicts of interest in the case.
Good news for Sullivan & Cromwell. The FTX Bankruptcy Judge just approved their retention amid scathing allegations by a former FTX Chief Regulatory Officer. No continuance to investigate but the Judge’s decision made sense and S&C’s arguments were compelling/very well-presented. pic.twitter.com/ZSVZdGyvkw John Reed Stark (@JohnReedStark) January 20, 2023
The decision came despite concerns related to Sullivan & Cromwell having advised FTX since before it filed for Chapter 11 protection in November 2022. On Jan. 9, United States senators John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis called on the judge to approve a motion to appoint an independent examiner into FTXs activities.
Sullivan & Cromwell subsequently emphasized that the law firm has never served as primary outside counsel to any FTX entity and had a limited and largely transactional relationship with FTX and certain affiliates prior to the bankruptcy.
The firm did not immediately respond to follow up questions from Cointelegraph. #Law #Business #Court #Sam Bankman-Fried #FTX #Regulation Related News What is Solana (SOL) Pay, and how does it work? Opinion: Barry Silbert keeps quiet as Genesis goes down in flames FTXs former top lawyer cooperated with the US in Sam Bankman-Fried case FTX former lead engineer in talks with federal prosecutors in Bankman-Fried case FTX customers names will remain sealed for now, rules judge
Legislators in Texas have approved new congressional maps designed to boost Donald Trump’s Republicans at next year’s midterm elections.
Known as redistricting, the state’s re-drawn map would shift conservative voters into districts currently held by Democrats, and combine other districts with a Democratic majority into one.
The process is not new, and is completely legal – unless it is ruled to be racially motivated – but typically occurs every 10 years after the US Census to account for population changes.
The push to redistrict early came from Mr Trumphimself, who wants to bolster his chances of preserving the slim Republican majority in the House of Representatives at next year’s crucial midterms.
But by trying to re-draw the maps in the red state of Texas, Democrats have lined up their own counter redistricting effort in the blue state of California.
If more states decide to re-consider their maps, it has the potential to largely determine the outcome of the 2026 midterms, before a single vote is cast.
What’s happening in Texas?
Mr Trump first said he wanted politicians in Texas to redraw the state’s congressional district in July. The governor of Texas, Greg Abbott, followed up on the president’s demands, calling for a special session to vote on new maps.
“Please pass this map ASAP,” Mr Trump urged on his Truth Social platform on Monday. “Thank you, Texas!”
Image: Republican Texas State Representative Todd Hunter brought about the legislation. Pic: AP
In an effort to try to make passing the vote as difficult as possible, Democrats fled the state for two weeks. Per parliamentary rules, if enough Democrats refuse to take part in the special session, the Texas House can’t meet.
On their return, each Democratic politician was assigned a police escort to ensure they attended the session.
Nicole Collier, who refused the police escort, stayed in the House for two nights, and was pictured with an eye mask and blanket trying to sleep at her desk.
Image: Nicole Collier sleeps in the House chamber after refusing a police escort. Pic: Reuters
Once the debate started, the doors to the chamber were locked and all members wanting to leave had to get a permission slip to do so.
After nearly eight hours, the legislation to formally change the map was passed 88-52 on Wednesday.
It now needs to be approved by the Texas Senate, where Republicans hold a majority, and then signed off by Mr Abbott, who has already committed to doing just that.
Image: Activists protest against mid-decade redistricting in Texas. Pic: AP
Why re-draw maps?
Republicans in Texas have openly said the rally to re-draw congressional maps is in the party’s interest.
Todd Hunter, the Republican who wrote the legislation formally creating the new map, told the House: “The underlying goal of this plan is straight forward: improve Republican political performance.”
He said the dispute is nothing more than a partisan fight, and made reference to the US Supreme Court having previously allowed politicians to redraw districts for partisan purposes.
Democrats hit back, arguing the disagreement was about more than partisanship.
“In a democracy, people choose their representatives,” representative Chris Turner said. “This bill flips that on its head and lets politicians in Washington, DC, choose their voters.”
Another Democrat, John H Bucy, blamed the president, saying: “This is Donald Trump’s map.
“It clearly and deliberately manufactures five more Republican seats in Congress because Trump himself knows that the voters are rejecting his agenda.”
How have Democrats responded?
The move by Republicans has triggered a tit-for-tat move by the Democrats, who are due to meet in California on Thursday to revise the state’s maps in order to gain five more seats.
To enact the same powers in California will prove harder, as state laws require an independent commission to take responsibility for redistricting – meaning it would need to be approved by voters in a special election.
In other blue states, rules are even tighter. For example, in New York, they cannot draw new maps until 2028, and even then, only with voter approval.
Despite the obstacles, California governor Gavin Newsom confirmed a redistricting election will take place in the state on 4 November, in order to “fight fire with fire”.
His plan has gained support from former president Barack Obama, who said it was necessary to “stave off” the Republicans’ move in Texas.
Image: Barack Obama attends Trump’s inauguration in January. Pic: The New York Times via AP
Could this affect the midterms?
The midterms in November next year will likely be on a knife edge.
Whatever the outcome, it could shape the remainder of Mr Trump’s second term in office. A Democrat majority would make it tougher for him to pass laws.
Currently, Republicans control the House of Representatives in Washington, 219-212 (excluding four open vacancies). A party needs 218 seats for a majority.
In the Senate, the Republicans hold a similarly slim majority of 53 to 45.
Image: Gavin Newsom is framing his response as the ‘election rigging response act’. Pic: Reuters
However, the incumbent president’s party typically loses seats in the midterms.
In the 2018 midterms, during Mr Trump’s first tenure as president, the Democrats took control of the House. Likewise, in 2022, when Joe Biden was president, the House swung back to the Republicans.
It’s important to note that 27 House seats will remain in states that are unlikely to redraw their maps, according to The New York Times.
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In a bid to avoid a repeat of history, Mr Trump is pushing for redistricting in states beyond Texas. Top Republicans in states like Indiana, Missouri, and Florida continue to talk about tweaking their maps to create more Republican-controlled congressional seats.
While Ohio has to legally redraw, the timing of which could benefit the Republicans, and, by extension, Mr Trump.
The British seaside town of Bournemouth has a complex relationship with migration. It needs migrants to work in the tourist industry, which is vital for the economy.
Some residents say it’s always been a multicultural place, but others question if too many people coming here undermines the cultural identity of the town.
On Bournemouth seafront, we find that immigration is something that some white British people want to talk about – but not openly, and not on camera.
One woman, who knows the town well, said: “Bournemouth has changed because of the migration of people who have come here. The whole atmosphere of the place has changed.
Image: One woman, who would only speak anonymously, said the ‘atmosphere of the town has changed’
“It’s strange to hear foreign languages spoken so frequently in our country. To not understand anything that’s being said around you is disconcerting,” she added.
I asked her if it made her uncomfortable, and if so, why? Is it the scale of migration which is bothering her?
“Visually, that seems to be the case,” she says. “We see what we see. I don’t see many white British people.”
I’m trying to get to the heart of what’s troubling her.
“It’s hard to define. I remember how it was. I remember the community. I’m worrying that our society as Brits is being undermined by the people who are coming in,” she says.
For decades, Britain has wrestled with the thorny issue of migration – who should be allowed into the country and from where.
The change in the demographic of the town is clear. Between the 2011 and 2021 censuses, the non-British-born population in Bournemouth’s local authority went up by 47%, and UK net migration has continued to rise significantly since then.
Image: Bournemouth is a popular tourist destination
Image: The town attracts tourists because of its long sandy beach
Post-Brexit changes
Nine years ago – just before Brexit – we visited Bournemouth’s Cumberland Hotel. Back then, the staff were mostly EU citizens – many from Eastern Europe.
Returning to the hotel, we speak to the manager, Sean Nell.
He said: “A lot of our workforce were EU nationals and after Brexit, a lot of them left – they found other work other than hospitality.
“A lot of our workforce we’re seeing now that we can recruit from is probably South Asia.”
Image: Sean Nell, hotel manager in Bournemouth
One of the staff is barman Shardul Tomas, who came to the UK from India in 2022 on a student visa. Whilst studying for his master’s degree, he began working at the hotel.
“It’s good to come here and experience new culture and do what we wish to do in our fields….after Brexit, the Europeans were less, so we were able to get good jobs,” he said.
Image: Shardul Tomas moved to the UK three years ago
‘We are replaced’
Nine years ago, Margaret Kubik was the assistant restaurant manager at the Cumberland.
We tracked her down and discovered she’s now working as a self-employed driving instructor.
She said: “When we met nine years ago, we as the Polish people were very much accused of taking the jobs from English people. Now we are replaced by the South Asian people.”
Image: Margaret Kubik came to the UK in 2004 from Poland she now works as a driving instructor
‘It’s not England any more’
For some Bournemouth residents, hotels housing asylum seekers have almost become the focal point for wider concerns about migration – as is happening in other towns across the UK.
Visiting a protest outside an asylum hotel, we found people are less camera shy than the woman on the seafront – seemingly more comfortable talking about migration among a crowd of like-minded people.
Image: The Britannia Hotel in Bournemouth is one site which has housed asylum seekers
In reference to asylum seekers, one protester, shaking her head, told us: “We don’t know who these people are. Who are they? It makes you feel like it’s not England any more.”
For a couple of hours, two angry groups face off over their differing views on immigration. But not everyone shares concerns about the impact of migration on the town.
Kevin Maidment was born in Bournemouth. I asked if he feels the fabric of the town has changed.
Image: Kevin Maidment
Protesters ‘need somebody to hate’
He said: “No, because it’s always been a place where foreign language students visit.
“I think this lot down the road, they need somebody to hate… now it’s refugees, 10 years ago it was the Poles and the Eastern Europeans,” he said.
Watching the two groups with opposing views trying to drown each other out is a man called Colin. He lives in a flat between two asylum hotels, a few minutes walk apart.
Image: Colin lives in a flat between two asylum hotels
“Personally, the immigrants aren’t a problem on the street or anything like that at all,” Colin says, referring to those seeking asylum.
“But people are fed up with the cost. The cost is a big problem because it’s so high.”
But with more councils vowing to launch legal challenges over the government’s use of asylum hotels, the immigration protest movement shows no sign of fizzling out.
The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025.
Gonzalo Fuentes | Reuters
Meta Platforms has paused hiring for its new artificial intelligence division, ending a spending spree that saw it acquire a wave of expensive hires in AI researchers and engineers, the company confirmed Thursday.
The pause was first reported by the Wall Street Journal, which said that the freeze went into effect last week and came amid a broader restructuring of the group, citing people familiar with the matter.
In a statement shared with CNBC, a Meta spokesperson said that the pause was simply “some basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
According to the WSJ report, a recent restructuring inside Meta has divided its AI efforts into four teams. That includes a team focused on building machine superintelligence, dubbed the “TBD lab,” or “To Be Determined,” an AI products division, an infrastructure division, and a division that focuses on longer-term projects and exploration.
It added that all four groups belong to “Meta Superintelligence Labs,” a name that reflects Chief Executive Mark Zuckerberg’s desire to build AI that can outperform the smartest humans on cognitive tasks.
In pursuit of that goal, Meta has been aggressively spending on AI this year. That included efforts to poach top talent from other AI companies, with offers said to include signing bonuses as high as $100 million.
In one of its most aggressive moves, Meta acquired Alexandr Wang, founder of Scale AI, as part of a deal that saw the Facebook parent dish out $14.3 billion for a 49% stake in the AI startup.
Wang now leads the company’s AI lab focused on advancing its Llama series of open-source large language models.
Too much spending?
While Meta’s aggressive hiring strategy has caught headlines in recent months for their high price tags, other megacap tech companies have also been pouring billions into AI talent, as well as R&D and AI infrastructure.
However, the sudden AI hiring pause by the owner of Facebook and Instagram comes amid growing concerns that investments in AI are moving too fast and a broader sell-off of U.S. technology stocks this week.
Earlier this week, it was reported that OpenAI CEO Sam Altman had told a group of journalists that he believes AI is in a bubble.
However, many tech analysts and investors disagree with the notion of an AI bubble.
“Altman is the golden child of the AI Revolution, and there could be aspects of the AI food chain that show some froth over time, but overall, we believe tech stocks are undervalued relative to this 4th Industrial Revolution,” said tech analyst Dan Ives of Wedbush Securities.
He also dismissed the idea that Meta might be cutting back on AI spending in a meaningful way, saying that Meta is simply in “digestion mode” after a massive spending spree.
“After making several acquisition-sized offers and hires in the nine-figure range, I see the hiring freeze as a natural resting point for Meta,” added Daniel Newman, CEO at Futurum Group.
Before pouring more investment into its AI teams, the company likely needs time to place and access its new talent and determine whether they are ready to make the type of breakthroughs the company is looking for, he added.