In the quarter ending on October 31, the now-defunct cryptocurrency exchange FTX has been burning through an astonishing $53,000 per hour on bankruptcy lawyers and advisers, according to the latest compensation filings.
Court records from December 5 to December 16 reveal that bankruptcy lawyers have amassed a staggering $118.1 million in fees from August 1 to October 31.
Over this 92-day period, this amounts to a jaw-dropping daily expenditure of $1.3 million or an astonishing $53,300 per hour.
Topping the list of charges is the management consulting firm Alvarez and Marshall, demanding a colossal $35.8 million for their services during these three tumultuous months.
Following closely behind, global law firm Sullivan & Cromwell billed $31.8 million, with an average hourly rate of $1,230.
Global consulting firm AlixPartners enters the fray with $13.3 million for professional services linked to forensic investigations, while Quinn Emanuel Urquhart & Sullivan submitted a bill for $10.4 million during the same timeframe.
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Various smaller advisory firms also added to the tally, contributing more than $26.8 million to the overall expenses.
A pseudonymous FTX creditor shared figures on December 17, suggesting that the total legal fees fully paid since the commencement of the FTX bankruptcy case have soared to an astonishing $350 million.
Meanwhile, an earlier report filed on December 5 by the court-appointed fee examiner, Katherine Stadler, raised “significant areas of concern” regarding billings from larger advisory firms such as Sullivan & Cromwell, Alvarez & Marshall, and others, covering the period from May 1 to June 31.
The report cited apparent issues like top-heavy staffing, seemingly excessive meeting attendance, fees associated with non-working travel time, and various technical and procedural deficiencies in time entries, including vague and lumped entries, particularly concerning billings from Alvarez & Marshall.
In summary, the bankruptcy proceedings of FTX have resulted in a staggering expenditure on legal and advisory services, with some firms charging astronomical fees.
Concerns have been raised about billing practices and the transparency of these expenses, further complicating the complex bankruptcy process.
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