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