World

FTX’s legal bills show progress on exploring a crypto exchange reboot

Whether FTX’s new chief executive officer actually pushes forward with an effort to restart the bankrupt crypto exchange, its lawyers are billing it for the job.

For the latest headlines, follow our Google News channel online or via the app.

Attorneys for FTX have been exploring tax issues surrounding a potential reboot of FTX as well as the cybersecurity implications and testing user experience, according to monthly fee statements from law firm Sullivan & Cromwell LLP.

Their bill for February came to $13.5 million for tasks ranging from recovering billions of assets to cooperating with law enforcement, as well as considering “long-term options for the exchange.”

John J. Ray III, the new CEO of FTX, told the Wall Street Journal in January that he’s exploring restarting FTX.com, the company’s main international exchange, in a bid to recoup value for creditors and customers.

Any effort comes even after Ray, who has for decades steered companies including Enron Corp. through bankruptcy, called it the worst failure of corporate controls he had ever seen.

The collapse left creditors with at least $11.6 billion of claims and destabilized an entire market with ramifications that are still being felt. In the face of those challenges, a restart would be complex.

“With the compliance and risk-management deficiency, building an exchange is extremely challenging,” said Daniel Tramel Stabile, a partner at law firm Winston & Strawn LLP who co-leads its digital-assets group and isn’t involved in the FTX reboot effort.

Still, Ray’s core mission is to create as much value as possible for creditors, which could include assessing whether a revival of the exchange would be preferable to simply selling assets, Stabile said.

It’s unclear whether FTX’s new management team would ultimately go forward with restarting the exchange.

It’s also unclear whether the restart is a limited effort for processing any withdrawals, or a broader effort to relaunch the business, once run by Sam Bankman-Fried, who faces trial in October after pleading not guilty to fraud and campaign-finance law charges.

According to a fee statement in February, Sullivan & Cromwell lawyers worked on a variety of issues related to the effort.

One note mentions analyzing “potential security concerns re: potential FTX exchange reboot.” Another mentions corresponding with Sygnia Inc., the cybersecurity firm that advised FTX after the platform was hit by a post-bankruptcy hack in November, on potential reboot issues.

User experience

Lawyers also corresponded with Ray on tax issues. One fee was to “analyze possible reestablishment of exchange and associated tax consequences,” including US taxing jurisdiction. Other tasks in February included email exchanges with Ray and other advisers on the “creation of mock-up exchange to test user experience.”

The FTX debtors’ group declined to comment on whether the exchange is planning to reboot. Sullivan & Cromwell and Sygnia didn’t respond to requests for comment.

The FTX exchange lacked fundamental financial and accounting controls, and “reconstruction of the debtors’ balance sheets is an ongoing, bottom-up exercise that continues to require significant effort by professionals,” FTX CEO Ray said in a report released Sunday.

In the monthly fee statement, Sullivan & Cromwell said the services it performed for FTX represent “one of the most complicated, multidisciplinary exercises by any law firm in any area of law.”

In traditional, non-digital-asset industries, there are many examples of companies coming back from a Chapter 11 process, such as American Airlines Group Inc. and General Motors Co., Stabile said.

But, for FTX, reviving the exchange as a long-term business would be a “more ambitious plan with a number of obstacles, including regulatory, compliance and reputational challenges,” he said.

“When we talk about restarting — rebooting — it’s not totally clear what they have in mind,” Stabile said. “There could be a rebooting in the sense of reopening the exchange with a limited purpose for getting assets off the exchange.”

New bail agreement reached between Sam Bankman-Fried, US prosecutors

Investors pull $1.6 billion from Binance after CFTC lawsuit

World

Crown Prince of Abu Dhabi meets with CEOs of leading Norwegian companies

H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has met with a group of CEOs from leading Norwegian companies, as part of their participation in the UAE-Norway Investment Forum, held alongside his official visit to the Kingdom of Norway.

During the meeting, H.H. Sheikh Khaled bin Mohamed bin Zayed underscored the UAE leadership’s commitment to strengthening economic cooperation with its international partners.

He highlighted that investment in innovation and knowledge is a cornerstone for achieving sustainable development, noting that enhancing collaboration with Norwegian companies across key sectors will open new avenues for mutual economic growth between the two countries.

The UAE-Norway Investment Forum, taking place in Oslo, aimed to highlight available investment opportunities and strengthen trade relations between the UAE and Norway, fostering shared interests and supporting innovation and knowledge-based economic visions.

-wam

World

At the Indonesia International Book Fair 2024, TRENDS inaugurates 10th global office, releases four books

As part of its Asian research tour, partnership with Aletihad News Center, and
primary sponsorship of the Indonesia International Book Fair 2024, TRENDS
Research & Advisory inaugurated its office in Jakarta, marking its 10th location
worldwide. It also released four books in Indonesian.
The inauguration event was attended by ambassadors of the UAE, Bahrain, and
Jordan to Indonesia, chairpersons of the UAE and Indonesian Publishers’
Associations, the Director of TRENDS’ Jakarta office, and a group of researchers
and academics.
Speaking at the event, Dr. Mohammed Abdullah Al-Ali, CEO of TRENDS
Research & Advisory, stated that TRENDS’ international offices—set to reach 15
by the end of 2024—aim to enhance the Center’s research efforts and deepen its
role in disseminating knowledge, thus serving as a global knowledge bridge.
He emphasized, “At TRENDS, we believe in the importance of cooperation
between think tanks and prioritize this endeavor. We believe the TRENDS office in
Jakarta will enhance the exchange of knowledge and ideas between think tanks in
Asia and the Middle East, opening new horizons for collaboration in various
fields.”

Four books in Indonesian
As part of the Jakarta office’s inaugural activities, four books were released in
Indonesian, including the 11th and 12th books of the Muslim Brotherhood
Encyclopedia and Global Trends in AI and Automation and the Future of
Competition between Man and Machine: An Analytical Forward-looking Vision.

Hostility to Arab states
The 11th book of the Muslim Brotherhood Encyclopedia, The Concept of the State
According to the Muslim Brotherhood, highlights its hostile stance toward Arab
states since its inception. The group views them as an obstacle to its ascent to
power. It opposed the modern principles upon which these states were built,
considering them incompatible with the group’s unique interpretation of Islam,
which it claimed to embody exclusively.

Exclusion of nonconformists
The 12th book, The Muslim Brotherhood: Rejection of Tolerance and Exclusion of
Nonconformists, examines the Muslim Brotherhood’s stance towards
nonconformists, individuals, and entities. The book reveals the group’s binary view
of the world, categorizing others as allies or adversaries. It ties these relationships
to the Brotherhood’s internal power struggles and self-serving interests.

Global Trends in AI
The third book, Global Trends in AI, explores significant developments in AI and
its impact on various aspects of life, including the economy, society, and
governance. It also offers a comprehensive analysis of technological advancements
in AI, its applications across sectors, the ethical and social challenges it presents,
and its future trajectory.

Automation

The fourth book, Automation and the Future of Competition between Man and
Machine: An Analytical Forward-looking Vision, addresses the growing challenges
faced by the human workforce in the face of widespread automation and AI
applications. The book concludes that while automation presents a significant
challenge to the labor market, it simultaneously creates new opportunities. It
emphasizes the importance of preparing for this shift through skills development,
continuous education, and adopting economic and social policies that support the
workforce.

Prominent pavilion and active presence
The TRENDS’ pavilion at the Indonesia International Book Fair has attracted
numerous visitors, including academic researchers and officials, such as the
ambassadors of the UAE, Bahrain, Qatar, Jordan, and Turkey. Additionally,
chairpersons of Arab and Indonesian publishers’ associations, authors, publishers,
and students visited the pavilion. All were impressed with and praised TRENDS’ diverse, valuable publications. They also commended TRENDS’ active
international presence and ability to address global developments with rigorous
analytical research.
Dr. Mohammed Abdullah Al-Ali honored the esteemed guests, including
ambassadors of the UAE and Bahrain to Indonesia, Wedha Startesti Yudha,
Chairperson of the Indonesia International Book Fair Committee, Arys Hilman
Nugraha, Chairman of the Indonesian Publishers Association, and others,
presenting them with TRENDS’ publications and commemorative shields.
Additionally, he awarded TRENDS’ Research Medal to Ni Made Ayu Martini
Indonesian Deputy Minister of Marketing, Tourism and Creative Economy
It is worth noting that during its current Asian research tour, TRENDS announced
the launch of the TRENDS Research Medal, awarded to individuals who make
significant contributions to the development of scientific research and promote collaboration with TRENDS in strengthening a culture of research across various fields.

World

US determined to prevent full-scale war in Middle East, Joe Biden tells UNGA79

US President Joe Biden highlighted the US Administration’s determination to prevent a wider war that engulfs the entire Middle East region, noting that a diplomatic solution “remains the only path to lasting security to allow the residents from both countries to return to their homes on the border safely”.

In remarks he made today before the 79th Session of the United Nations General Assembly (UNGA79), the US President said, “Full-scale war is not in anyone’s interest,” adding that a diplomatic solution is still possible.

He also touched on “the rise of violence against innocent Palestinians on the West Bank”, and the need to “set the conditions for a better future”, which he said featured “a two-state solution, where the world — where Israel enjoys security and peace and full recognition and normalised relations with all its neighbours, where Palestinians live in security, dignity, and self-determination in a state of their own”.

President Biden underscored the ceasefire and hostage deal put forth by Qatar and Egypt, which the UN Security Council endorsed. He said, “Now is the time for the parties to finalise its terms, bring the hostages home,” adding that this would help ease the suffering in Gaza, and end the war.

-WAM