FTX approved to pay legal fees of non-U.S. creditor group

FTX was granted court approval on Wednesday to reimburse over $2 million in legal fees to a group of non-US creditors to assist in negotiating a competitive resolution between FTX customer groups. US Bankruptcy Judge John Dorsey approved FTX's request to pay up to $2 million to a special group of non-US clients to reimburse their legal fees. The group represents 66 large account holders with cryptocurrency deposits exceeding $1 billion on FTX International Cryptocurrency Exchange as part of resolving customer disputes. This amount will cover fees from May 1 to October 31. FTX also agreed to pay them up to $650,000 per month during its remaining bankruptcy period, subject to future court review.

The judge initially questioned why it was necessary to pay for the negotiating fees of a group of creditors because these negotiations were in their own interest. He said he did not want to open a "Pandora's box" of similar requests. But he accepted FTX's explanation that the creditor group helped streamline negotiations of an agreement that would affect FTX's 9 million customers. (Reuters)