FTX Bankruptcy Legal Costs Hit $118.1 Million in Three Months
Jessie A Ellis Dec 19, 2023 11:10
FTX's bankruptcy lawyers and advisers earned an average of $118.1M in fees between August and October, with Alvarez and Marshall leading the charges.
FTX, once a prominent figure in the cryptocurrency exchange market, has been embroiled in a costly bankruptcy case. Between August 1 and October 31, the legal fees charged by the bankruptcy lawyers and advisers handling FTX's case have skyrocketed to a staggering $118.1 million. This amount averages out to approximately $53,300 per hour, a rate reflective of the complex nature of the bankruptcy proceedings and the high-profile status of the FTX case.
The management consulting firm Alvarez and Marshall has emerged as the top biller in this scenario, charging an immense $35.8 million for their services over the three-month period. This is closely followed by the global law firm Sullivan & Cromwell, which billed $31.8 million. These figures underscore the intensity and breadth of the legal and management consulting efforts involved in navigating the intricate web of issues surrounding FTX's bankruptcy.
The immense legal fees are not just a standalone issue; they have broader implications. For instance, the costs incurred for other professional services related to forensic investigations have also been significant, with AlixPartners alone charging $13.3 million over the year. Such exorbitant fees raise concerns regarding the impact on the availability of funds for creditor reimbursement and the overall financial recovery process for FTX.
FTX's bankruptcy case has resulted in exceptionally high legal and advisory fees, totaling $118.1 million between August and October, averaging $53,300 per hour. Alvarez and Marshall topped the billing, highlighting the costly and complex nature of this high-profile bankruptcy proceeding.
Image source: Shutterstock