The financial toll of FTX’s bankruptcy proceedings continues to mount, with recent court filings revealing the extensive legal costs incurred in February, alongside the hefty fees charged by the company’s restructuring chief and CEO, John J. Ray III. The documents, submitted between April 4 and April 10, outline a staggering $32.5 million in fees for just one month of legal services from the law firms engaged in the case. This figure does not account for additional expenses, including the substantial compensation paid to Ray.
John J. Ray III, who took the helm of FTX following its collapse, has been under the spotlight for his significant earnings amidst the ongoing financial turmoil of the bankrupt exchange. A March court filing disclosed Ray’s earnings for February, totalling $305,000. More recent filings from April 10 show that his compensation for March was closely aligned, with total fees and expenses reaching $329,173.
Ray’s billing rate is detailed at an eye-watering $1,300 per hour, for which he reported working 255.9 hours throughout March. This workload translates to fees amounting to $327,470, with the balance covering airfares, lodging, transportation, meals, and miscellaneous expenses.
The revelations underscore the complex and costly nature of FTX’s bankruptcy proceedings, highlighting the significant financial resources being allocated to legal and administrative efforts. As stakeholders and debtors grapple with the implications of the exchange’s downfall, the escalating expenses serve as a stark reminder of the challenges ahead in navigating through the bankruptcy process.
In the latest development surrounding the bankruptcy proceedings of the once-thriving crypto exchange FTX, court filings have unveiled the staggering legal and advisory fees for February. The documents, submitted in early April, reveal that FTX is contending with a financial strain, having disbursed approximately $32.5
 million in fees for just a month’s worth of services from its cadre of legal and financial advisors.
The law firm Quinn Emanuel Urquhart & Sullivan accounted for over $2.7 million of these expenses, with partners at the firm charging rates between $1,246 and $1,917 per hour and associates billing between $747 and $1,183 per hour. The firm reported nearly 2,610 hours of work for February alone.
Further compounding the financial outlay, Alvarez and Marsal, a professional services firm, along with forensic investigation consultants Alix Partners, submitted fee statements amounting to over $11.9 million and around $3.6 million, respectively, for their services during the same period.
Sullivan & Cromwell, another law firm engaged by FTX, sought the highest reimbursement, billing over $13.4 million for their extensive team’s efforts in February. On the opposite end of the spectrum, Perella Weinberg Partners, an investment banking firm, and Landis Rath & Cobb, serving as bankruptcy co-counsel, billed $77,891 and $582,604, respectively.
This trend of high advisory and legal expenses is consistent with January’s costs, during which FTX paid out $34.18 million for similar services, as indicated in earlier court filings. The substantial amounts being paid to lawyers, accountants, and consultants underscore the complex and expensive nature of the bankruptcy process, leaving FTX customers anxious and awaiting restitution amidst the ongoing financial turmoil.
With the bankruptcy far from conclusion, it is reported that Sullivan & Cromwell alone could amass hundreds of millions of dollars in fees by the time FTX’s bankruptcy investigation is finalized, illustrating the protracted and costly road ahead for all parties involved.
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