FTX loses $53,000 every hour in ‘loss fees’, latest filings show
In the three months ending Oct. 31, defunct crypto exchange FTX was raking in roughly $53,000 an hour on bankruptcy attorneys and consultants, the latest round of compensation filings show.
Court filings from Dec. 5 to Dec. 16 show bankruptcy attorneys filed at least $118.1 million between Aug. 1 and Oct. 31. Over 92 days, that amount is $1.3 million per day or $53,300 per hour.
The largest bill came from management consulting firm Alvarez & Marshall, which billed $35.8 million for its three-month service.
In second place was global law firm Sullivan & Cromwell, which billed $31.8 million for its services. The hourly rate for Sullivan & Cromwell services was $1,230 per hour.
Global consulting firm Alix Partners paid $13.3 million for professional services related to forensic investigations. Quinn Emanuel Urquhart & Sullivan billed $10.4 million during the same period, while several other billings from smaller consulting firms totaled more than $26.8 million.
Figures shared by an anonymous FTX creditor in a Dec. 17 post by X (formerly Twitter) show that the total legal fees paid in full since FTX's bankruptcy case began are approximately $350 million.
BTW @lopp This estimates the remaining professional fees at $1.45B for a total of $1.8B. The property is currently paying $0.5B per year and losses are not short of endeavors.
To date, just under 1 year (~$350mm paid out) here are the fees requested: pic.twitter.com/5p6at5ZbWy
— Mr Purple ️ (@MrPurple_DJ) December 17, 2023
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Meanwhile, a report filed earlier on Dec. 5 by court-appointed billing investigator Kathryn Stadler identified “issues of concern” in billings filed by large consulting firms between May, including Sullivan & Cromwell, Alvarez & Marshall and others. 1 and June 31.
“The pay inspector identified high burdensome manpower, meeting attendance, off-duty travel time-related payments and various technical and procedural deficiencies (including unclear and garbled entries) related to certain periods,” the report said. Bills filed by Alvarez and Marshall.
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