John Reed Stark, a lawyer and former SEC enforcement chief, has labeled
the effort by the leadership of the now-bankrupt crypto exchange FTX and its associated legal firms to relaunch the platform as blatant fraud. He predicts that by the end of 2024, each attorney involved in this case will afford to buy a luxury beach house, effectively financed by the funds of FTX users.
“The FTX bankruptcy team’s lawyers should send thank you notes to all FTX customers,” Stark sarcastically comments on the situation.
John's critical stance stems from the hefty salaries earned by the lawyers in this bankruptcy case, which, according to various reports, have already exceeded $250 million since the company's collapse. Stark notes that any seasoned lawyer would have immediately recognized the impossibility of a platform relaunch. Nonetheless, the FTX team persisted in endorsing this notion, looking to boost their profits.