FTX Loses $53K in Bankruptcy Fees Every Hour

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Last Updated on December 18, 2023 by Bitfinsider

According to the most recent set of pay documents, the defunct crypto exchange FTX spent approximately $53,000 per hour on bankruptcy lawyers and advisers in the three months ending Oct. 31.

According to court records from Dec. 5 to Dec. 16, the bankruptcy lawyers charged at least $118.1 million between Aug. 1 and Oct. 31. This equates to $1.3 million every day, or $53,300 per hour, over the course of 92 days.

The management consulting company Alvarez and Marshall billed the most for its three-month services, charging $35.8 million.

Global law firm Sullivan & Cromwell came in second, charging $31.8 million for their services. The hourly charge for Sullivan & Cromwell’s services was $1,230.

Meanwhile, an earlier assessment filed on December 5 by Katherine Stadler, the court-appointed fee examiner, noted “significant areas of concern” with billings provided by the major advising firms, including Sullivan & Cromwell, Alvarez & Marshall, and others between May 1 and June 31.

“The Fee Examiner identified apparently top-heavy staffing, apparently excessive meeting attendance, fees related to non-working travel time, and various technical and procedural deficiencies with respect to some time entries (including vague and lumped entries),” according to the report on Alvarez & Marshall’s billings.

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