FTX Bankruptcy Lawyers and Counselors pocketed $32.5 million in February

The latest round of legal fees for bankrupt crypto exchange FTX has been released, and it remains a frightening number for creditors. From April 4 to April 10, a series of court documents outlines statements of monthly fees for February from law firms participating in FTX’s bankruptcy proceedings, which amount to approximately $32.5 million.

The amount does not include compensation for restructuring chairman and CEO John J. Ray III, who received $305,000 in February, according to a March court filing. Ray’s March earnings were similar, with the April 10 report showing his total fees and expenses were $329,173.

FTX principals were paid $1,300 per hour and worked 255.9 hours between March 1 and March 31. The total is $327,470 in expenses, with the remaining $1,703 for tickets, hotels, transportation, meals, and other expenses.

Quinn Emanuel Urquhart and Sullivan are seeking more than $2.7 million in replacements for February. Enterprise partners charge between $1,246 and $1,917 per hour, while partners charge between $747 and $1,183 per hour. The total number of company hours billed is approximately 2,610.

According to an April 4 filing by law firms Alvarez and Marsal and forensic investigative specialist Alix Partners, their reported February fees totaled more than $11.9 million and $3.6 million, respectively. The most money was requested from the law firms Sullivan and Cromwell, which billed a total of more than $13.4 million for services performed for FTX in February by their growing team of attorneys and associates.

In February, Sullivan’s and Cromwell’s staff worked on FTX for nearly 12,000 hours. Kroll is the source. Meanwhile, investment banking firm Perella Weinberg Partners billed $77,891 in February, and the bankruptcy board of Landis Rath and Cobb billed $582,604 in February.

According to previous court filings, advisers and attorneys for the bankrupt exchange were billed the same amount in January, with FTX paying $34.18 million for their combined services.

The fees, reimbursement, and expenses paid by FTX to its line of attorneys, associates, paralegals, accountants, investigators, directors, and executives continue to be hard for consumers who are still waiting for compensation to swallow. The bankruptcy was far from over, and it was suspected that Sullivan and Cromwell would receive hundreds of millions of dollars before the company’s bankruptcy investigation was completed.