FTX, the collapsed cryptocurrency exchange, reportedly incurred significant expenses on bankruptcy lawyers and consultants, spending around $53,000 per hour over the three months until October 31, according to the latest filings for compensation.
Court filings spanning from December 5 to December 16 unveiled that bankruptcy attorneys amassed a total of at least $118.1 million in fees from August 1 to October 31. Over this 92-day duration, this translates to an average of $1.3 million per day or approximately $53,300 per hour.
The most substantial bill originated from the management consulting firm Alvarez and Marshall, charging $35.8 million for their services spanning three months. Following closely in second place was the global law firm Sullivan & Cromwell, which accrued fees totaling $31.8 million for their rendered services. Sullivan & Cromwell’s average hourly rate amounted to $1,230. Additionally, the global consulting firm AlixPartners billed $13.3 million for professional services linked to forensic investigations during the mentioned period. Quinn Emanuel Urquhart & Sullivan accrued $10.4 million in fees within the same timeframe, while smaller consulting firms collectively amassed fees exceeding $26.8 million.
An anonymous FTX creditor disclosed figures in a December 17 post on X (formerly Twitter), indicating that the legal fees paid in full since the initiation of FTX’s bankruptcy proceedings totaled approximately $350 million. Furthermore, a preliminary report filed on December 5 by court-appointed fee examiner Katherine Stadler highlighted "significant problems" with bills submitted during May by prominent consulting firms like Sullivan & Cromwell, Alvarez & Marshall, and others, covering the period between May 1 and June 31.
The report unveiled that the expense reviewer identified instances of top-heavy staffing, excessive meeting attendance, expenses related to non-work travel time, and various technical and procedural deficiencies in certain time entries, including vague and grouped entries submitted by Alvarez & Marshall.
