Former SEC Internet Enforcement Office Director: FTX’s cancellation of restart could be a way for its legal team to profit

John Reed Stark, former head of the Internet Enforcement Office at the US Securities and Exchange Commission (SEC), said that FTX's cancellation of its restart may be a way for its legal team to profit from the bankruptcy proceedings. Stark said, "All FTX customers should receive a sarcastic 'thank you' letter from FTX's legal team because they have made substantial profits in the bankruptcy proceedings. By 2024, each member of FTX's legal team may be able to afford a new seaside villa." According to recent compensation documents, FTX's bankruptcy legal team received at least $118.1 million in fees from August 1st to October 31st, equivalent to an average daily income of $1.3 million (or $53,300 per hour) during these 92 days.