FTX bankruptcy: the legal team fills its pockets

In the FTX affair, the revelations never end. While a former crypto exchange executive is currently facing charges of fraud, recent files reveal the staggering legal cost generated by the bankruptcy of FTX. In January alone, the fees amount to $38 million.

FTX Bankruptcy Team Costs $38 Million in January

FTX bankruptcy: Sullivan and Cromwell rack up half of entire legal bill

Sullivan & Cromwell are arguably the biggest beneficiaries of FTX’s bankruptcy. The first hearing was scheduled to have taken place in December 2022. The bankruptcy administrators have chosen this law firm to handle the discovery, disposal of assets, analysis and recovery of assets.

According to court records, the Sullivan & Cromwell firm’s bill amounted to 16.8 million dollars in January. This corresponds to 14,569 hours of legal work. However, it is not the only firm to work on the bankruptcy of FTX. Quinn Emanuel Urquhart & Sullivan and Landis Rath & Cobb also join the list.

The first is responsible for analyzing and recovering assets. His fees are $1.4 million. The second deals with hearings, litigation and the disposal of assets. It is billed at $663,995.

Financial services: Alvarez & Marshall present the highest bill

The firm’s fees currently cap at $12.3 million. This sum covers 5,644 hours of work on avoidance actions, financial analysis and accounting.

AlixPatners is also working on the bankruptcy of FTX. She conducts forensic analysis on DeFi products and tokens. His bill is $2.1 million for 2,454 hours of work.

Finally, there is investment bank Perella Weinberg Partners who continue to charge the crypto exchange a monthly fee of $450,000.

Currently, nearly 180 lawyers are working on the FTX bankruptcy. This explains the staggering costs. Creditors are anxiously awaiting the outcome of this case and hope to one day be reimbursed.

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