FTX pays $38 million in compensation to bankruptcy lawyers in January

The group of law firms in charge of the FTX bankruptcy case was paid a total of $38 million in January 2023.

FTX must pay $38 million in compensation to bankruptcy lawyers in January. Photo: Financial Times

Law firm Sullivan & Cromwell and its partners Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb will collect about $38 million in wages for 14,569 hours worked in January from the historic bankruptcy of FTX.

On January 19, FTX judge John T. Dorsey approved Sullivan & Cromwell to continue as the law firm representing FTX, despite the controversy over the company’s alleged conflict of interest. latent.

In total, the 3 law firms employ more than 180 lawyers and 50 staff members working on the FTX bankruptcy, coming from a variety of legal groups, investment bankers, and financial advisors. According to ReutersSullivan & Cromwell and their associates charged a service fee of $1,500 to $2,000 per hour.

Specifically, Sullivan & Cromwell reported an invoice of up to $16.8 million for FTX’s case handling in 19 business days. Some other companies involved in bankruptcy settlement include:

  • Alvarez & Marsal Financial Services: Charged $12.3 million for FTX asset undo operations for 3,370 hours, financial analysis for 1,168 hours, and accounting for 1,106 hours;
  • AlixPartners: Legal analysis of DeFi products and tokens owned by FTX; charged $2.1 million for 2,454 hours worked;
  • Quinn Emanuel Urquhart & Sullivan: Asset recovery and analysis, the attempt to undo the assets FTX made prior to bankruptcy. Record an invoice of $1.4 million.
  • Landis Rath & Cobb: Billing for hearings, litigation, and dispositions. Monthly fee of 663,995 USD;
  • Investment bank Perella Weinberg Partners: Developed restructuring strategy and correspondence with third parties, as well as efforts to sell high-value assets such as FTX LedgerX and FTX Japan. Billing $450,000 monthly;

Not only lawyers, the new interim CEO of FTX, Mr. John J. Ray III, also sent a salary bill worth $305,565. Court documents say FTX’s new CEO will collect $1,300 an hour plus a “reasonable expense” for untangling the troubles of one of the largest scams in history. .

Immediately after taking over FTX and getting a preliminary grasp of the company’s situation, Mr. Ray said “FTX is completely failed in management and has weak financial monitoring records”, even commented that the exchange is a an unprecedented case during his 40 years of career.

Synthetic Kyptos

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img