FTX Bankruptcy Case Accumulates $118.1 Million in Legal Fees
FTX, a once-prominent player in the cryptocurrency exchange market, is currently caught up in a costly bankruptcy case. The legal fees charged by the bankruptcy lawyers and advisers handling FTX’s case have reached a staggering $118.1 million between August 1 and October 31. This amounts to an average of approximately $53,300 per hour, reflecting the complexity of the bankruptcy proceedings and the high-profile status of the FTX case.
In this scenario, the management consulting firm Alvarez and Marshall have emerged as the top biller, charging an immense $35.8 million for their services over the three-month period. Following closely behind is the global law firm Sullivan & Cromwell, which has billed $31.8 million. These figures highlight the extensive legal and management consulting efforts required to navigate the complex issues surrounding FTX’s bankruptcy.
The exorbitant legal fees have implications beyond their sheer magnitude. The costs incurred for other professional services related to forensic investigations have also been significant, with AlixPartners alone charging $13.3 million over the course of the year. These excessive fees raise concerns about the availability of funds for creditor reimbursement and the overall financial recovery process for FTX.
The bankruptcy case of FTX has resulted in exceptionally high legal and advisory fees, totaling $118.1 million between August and October, with an average hourly rate of $53,300. The billing by Alvarez and Marshall, as the top service provider, emphasizes the costly and complex nature of this high-profile bankruptcy proceeding.