Consultancy firms and lawyers handling FTX&#8217;s bankruptcy have charged the failed exchange over $145 million for their five-month services, according to court filings.
The companies involved in FTX&#8217;s bankruptcy case include law firms Sullivan &amp; Cromwell, Landis Rath &amp; Cobb, and Quinn Emanuel Urquhart &amp; Sullivan. Others are management consulting firms Alvarez &amp; Marsal North America and AlixPartners.
<h2 id="sullivan-cromwell-has-billed-ftx-roughly-70m">Sullivan Cromwell has billed FTX roughly $70M</h2>
Law firm Sullivan &amp; Cromwell (S&amp;C) has charged $69,304,890 for its five-month services to the bankrupt exchange, according to a court filing.
<figure id="attachment_322028" aria-describedby="caption-attachment-322028" style="width: 1135px" class="wp-caption aligncenter"><img class="size-full wp-image-322028" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-095856.jpg" alt="Sullivan &amp; Cromwell FTX Fees" width="1135" height="195" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-095856.jpg 1135w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-095856-300x52.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-095856-1024x176.jpg 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-095856-768x132.jpg 768w" sizes="(max-width: 1135px) 100vw, 1135px" /><figcaption id="caption-attachment-322028" class="wp-caption-text">Source: Court Filing</figcaption></figure>
Within the first month of its service, S&amp;C <a href="https://cryptoslate.com/ftx-lawyers-file-7-5m-invoice-for-november-services/">sought</a> compensation of $9.5 million, describing its services as &#8220;one of the most complicated, multi-disciplinary exercises by any law firm.&#8221;
Subsequent services have attracted double digits fees from the bankruptcy lawyers. According to the court <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTQ5NjA2Nw==&amp;id2=-1">filing</a>, the firm charged FTX $15.4 million for its services in December 2022 and charged the exchange $27,512,580.6 this year.
In all of these charges, S&amp;C has always maintained that 80% of the charges were &#8220;actual, reasonable and necessary.&#8221;
Besides that, the law firm said it incurred additional expenses of roughly $450,000 for its work during the five months.
Meanwhile, S&amp;C&#8217;s appointment as FTX&#8217;s advisor was fraught with issues. FTX founder Sam Bankman-Fried <a href="https://cryptoslate.com/sbf-claims-law-firm-sullivan-cromwell-pressured-him-into-bankruptcy-filing-for-legal-consultancy-fees/">accused</a> the law firm of pressuring him to file for bankruptcy because of the fees it stood to earn. Four U.S. lawmakers also <a href="https://cryptoslate.com/four-us-lawmakers-ask-court-to-appoint-independent-examiner-for-ftx/">objected</a> to its appointment, citing a conflict of interest over its previous relationship with the bankrupt exchange.
However, FTX&#8217;s CEO, John Ray, <a href="https://cryptoslate.com/ftx-defends-move-to-appoint-law-firm-sullivan-cromwell-as-advisor/">defended</a> the law firm, saying its services were essential to safeguard the best interest of FTX and its stakeholders.
<h2 id="alvarez-marsal-charges-over-50m">Alvarez &amp; Marsal charges over $50M</h2>
Financial advisor to FTX, Alvarez &amp; Marsal, has charged the bankrupt exchange $53,129,184.5 for its services between November 2022 and March 2023.
<figure id="attachment_322048" aria-describedby="caption-attachment-322048" style="width: 1111px" class="wp-caption aligncenter"><img class="size-full wp-image-322048" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-112217.jpg" alt="Alvarez FTX charges" width="1111" height="201" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-112217.jpg 1111w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-112217-300x54.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-112217-1024x185.jpg 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-112217-768x139.jpg 768w" sizes="(max-width: 1111px) 100vw, 1111px" /><figcaption id="caption-attachment-322048" class="wp-caption-text">Source: Court Filing</figcaption></figure>
Within the first two months of its services, Alvarez &amp; Marsal charged FTX over $15 million for its services. The consultancy firm has subsequently charged $37.5 million for its services in 2023.
During this period, Alvarez &amp; Marsal said it incurred additional expenses of $1.4 million.
According to its <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTQ5NjA3NA==&amp;id2=-1">filings</a>, some of its services for FTX include avoidance actions, financial analysis, business operations, due diligence, accounting procedures, etc.
Like S&amp;C, the firm has maintained that 80% of the charges were &#8220;actual, reasonable and necessary.&#8221;
<h2 id="others-charged-around-21m">Others charged around $21M</h2>
Other firms like Landis Rath &amp; Cobb, Quinn Emanuel Urquhart &amp; Sullivan, and AlixPartners charged FTX around $21 million for their services.
According to court filings, Landis Rath &amp; Cobb <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTQ5NjA2OQ==&amp;id2=-1">charged</a> the bankrupt exchange $3.04 million. Of this fee, the firm revealed that the court had approved $1.9 million and its additional expenses of $47,257.
<figure id="attachment_322057" aria-describedby="caption-attachment-322057" style="width: 1029px" class="wp-caption aligncenter"><img class="size-full wp-image-322057" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-114656.jpg" alt="Landis Roth FTX" width="1029" height="349" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-114656.jpg 1029w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-114656-300x102.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-114656-1024x347.jpg 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-114656-768x260.jpg 768w" sizes="(max-width: 1029px) 100vw, 1029px" /><figcaption id="caption-attachment-322057" class="wp-caption-text">Source: Court Filing</figcaption></figure>
Law firm Quinn Emanuel Urquhart &amp; Sullivan charged FTX $8.95 million for its five months of service. Per the court <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTQ5NjM3Ng==&amp;id2=-1">filing</a>, the firm has incurred an additional $11,854.
<figure id="attachment_322060" aria-describedby="caption-attachment-322060" style="width: 1116px" class="wp-caption aligncenter"><img class="wp-image-322060 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115216.jpg" alt="Quinn Emanuel Urquhart &amp; Sullivan FTX charges" width="1116" height="445" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115216.jpg 1116w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115216-300x120.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115216-1024x408.jpg 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115216-768x306.jpg 768w" sizes="(max-width: 1116px) 100vw, 1116px" /><figcaption id="caption-attachment-322060" class="wp-caption-text">Source: Court Filing</figcaption></figure>
In its filing, management consulting firm AlixPartners said it had charged the bankrupt exchange $10.6 million — of which $4.97 million has been paid. The firm added that FTX paid $35,353 from its $107,638 incurred expenses.
<figure id="attachment_322064" aria-describedby="caption-attachment-322064" style="width: 994px" class="wp-caption aligncenter"><img class="size-full wp-image-322064" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115851.jpg" alt="Alixpartner FTX charges" width="994" height="285" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115851.jpg 994w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115851-300x86.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-02-115851-768x220.jpg 768w" sizes="(max-width: 994px) 100vw, 994px" /><figcaption id="caption-attachment-322064" class="wp-caption-text">Source: Court Filing</figcaption></figure>
The post <a rel="nofollow" href="https://cryptoslate.com/lawyers-consultancy-firms-charge-bankrupt-ftx-over-145m-in-5-months/">Lawyers, consultancy firms charge bankrupt FTX over $145M in 5 months</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Lawyers, consultancy firms charge bankrupt FTX over $145M in 5 months

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