paid the estate $26,786,503, an amount equal to 100% of the funds the entities received from FTX and the FTX Foundation
Interested to know whether this was a result of EV being pro-active, or being pressured by the FTX bankruptcy estate, given the relationship(s) between EV (trustees) and SBF. And what the implications might be for other orgs who received FTX funding. Have/are any other EA orgs paying money back?
I’d note that the pre-2022 transfers were in 2018 and 2019, to avoid any inference about years with no transfers (2020 and 2021). (Source pasted here.) Also—I wouldn’t draw any conclusions about transfers in 2019 (or even the parts of November/December 2018 that were within four years of the bankruptcy filing) given how small they were here. They were uneconomical to litigate, and so I wouldn’t have updated too much if they were or were not paid back.
I haven’t seen anything to update my initial reaction here. I’m cautious about applying to any other organization because I can’t be giving anyone legal advice.
I’d add that almost all other potential clawbacks are metaphorically classified as relatively small potatoes (using the threshold amount at which the proposed settlement must be publicly filed on the open docket as the dividing line for small vs. midsize potatoes). Many are at least an order of magnitude under the small-potatoes threshold. I expect the estate’s willingness to litigate those cases with its $2000-per-hour lawyers, or even junior associates billing more like $750-$1000 per hour, will be significantly lower than it would have been with EV, and that might be reflected in the deals that were offered. I have no inside info, though.
Interested to know whether this was a result of EV being pro-active, or being pressured by the FTX bankruptcy estate, given the relationship(s) between EV (trustees) and SBF. And what the implications might be for other orgs who received FTX funding. Have/are any other EA orgs paying money back?
I think a key detail here is they gave back all the 2022 money (90% of total) and kept all pre-2022 money (10% of total).
https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjU5MTQzNg==&id2=-1
I’d note that the pre-2022 transfers were in 2018 and 2019, to avoid any inference about years with no transfers (2020 and 2021). (Source pasted here.) Also—I wouldn’t draw any conclusions about transfers in 2019 (or even the parts of November/December 2018 that were within four years of the bankruptcy filing) given how small they were here. They were uneconomical to litigate, and so I wouldn’t have updated too much if they were or were not paid back.
I haven’t seen anything to update my initial reaction here. I’m cautious about applying to any other organization because I can’t be giving anyone legal advice.
I’d add that almost all other potential clawbacks are metaphorically classified as relatively small potatoes (using the threshold amount at which the proposed settlement must be publicly filed on the open docket as the dividing line for small vs. midsize potatoes). Many are at least an order of magnitude under the small-potatoes threshold. I expect the estate’s willingness to litigate those cases with its $2000-per-hour lawyers, or even junior associates billing more like $750-$1000 per hour, will be significantly lower than it would have been with EV, and that might be reflected in the deals that were offered. I have no inside info, though.