In the three months ending October 31, defunct crypto exchange FTX has been spending roughly $53,000 every hour on bankruptcy lawyers and advisors, the latest round of compensation filings shows.
Court filings Dec. 5-16 show that bankruptcy attorneys have collected at least $118.1 million between Aug. 1 and Oct. 31. Over the 92 days, this equates to $1.3 million per day or $53,300 per hour.
The largest bill came from the management consulting firm Alvarez and Marshall, which loaded $35.8 million for his services during the three months.
In second place was global law firm Sullivan & Cromwell, which loaded 31.8 million dollars for his services. The hourly rate for Sullivan & Cromwell's services averaged $1,230 per hour.
Global consulting firm AlixPartners loaded $13.3 million in the period for professional services related to forensic investigations. Quinn Emanuel Urquhart & Sullivan loaded $10.4 million in the same period, while several other billings from smaller advisory firms totaled more than $26.8 million.
Figures shared by a pseudonymous FTX creditor in a December 17 post on X (formerly Twitter) suggest the total legal fees have been paid in full. since the FTX bankruptcy case began It is approximately 350 million dollars.
BY THE WAY @career This estimates $1.45 billion of remaining professional fees for a total of $1.8 billion. The Estate currently collects $500 million a year and bankruptcies are not easy tasks.
To date, these are the rates that have been requested in just under 1 year (~$350 mm have been paid): https://t.co/fZhMyTE3B1 pic.twitter.com/5p6at5ZbWy
— Mr. Purple ️ (@MrPurple_DJ) December 17, 2023
Related: FTX Debtors Assess Value of Crypto Claims Based on Market Prices on Petition Date
Meanwhile, a previous report filed Dec. 5 by court-appointed fee examiner Katherine Stadler identified “significant areas of concern” with invoices submitted by the largest advisory firms, including Sullivan & Cromwell, Alvarez & Marshall and others, among 1 May and June 31.
"The rate examiner identified apparently excessive staffing, apparently excessive meeting attendance, rates related to non-work travel time, and several technical and procedural deficiencies with respect to some time entries (including vague and grouped entries )," states the report on the billings presented by Alvarez & Marshall.
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