FTX To Pay Its Lawyers And Advisers A Total Of $103 Million In Q1

Key Points:

• Over the first quarter, the lawyers and advisers firms assisting cryptocurrency exchange FTX through its bankruptcy proceedings are expected to earn a total of $103 million.
• According to various court documents, between April 28 and May 2, five entities billed FTX $36.4 million in March.
• The exchange has yet to completely dissolve following the crash last November.

The documents submitted by the bankrupt crypto trading platform FTX in court showed that in March, five legal and consulting-related companies, Sullivan & Cromwell, Alvarez & Marshal, AlixPartners, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb, billed FTX a combined $36.4 million.

Among them, the relevant bills in January and February amounted to $34.2 million and $32.5 million, respectively, and FTX will pay a total of $103 million for this in the first quarter.

Sullivan & Cromwell, located in New York, earned the highest compensation, charging $14.1 million in fees and expenditures in March, bringing its total for the first quarter to $44.4 million.

Partners at the business earned $2,165 per hour, while paralegals and legal analysts earned $425 and $595 per hour, respectively.

Following that, consulting firm Alvarez & Marsal invoiced over $13.8 million in March for the tens of thousands of hours it committed to avoidance actions, financial analysis, and accounting procedures.

It was the firm’s third consecutive over-the-top billing of more than $10 million since Sam Bankman-Fried’s former empire declared bankruptcy on November 11.

As FTX’s special counsel, Landis Rath & Cobb has spent most of its time in court, attending court hearings and going through litigation processes. The FTX lawsuit has been assigned to over 180 attorneys from Sullivan & Cromwell, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb. FTX has failed to put the nail in the coffin after a turbulent six months.

According to a similar recent incident, the FBI reportedly searched the home of former FTX co-CEO Ryan Salame as the executive faces further scrutiny for his close advising role to Sam Bankman-Fried.

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Harold

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