FTX Bankruptcy: $38M in Legal Fees Paid in January

• In January 2021, the total bill for legal and financial services in the FTX bankruptcy saga was $38 million.
• Sullivan & Cromwell billed the most, at $16.8 million, while Alvarez & Marsal submitted the largest charge of $12.3 million for financial analysis and accounting work.
• Perella Weinberg Partners charged a monthly fee of $450,000 to devise a restructuring strategy.

FTX Bankruptcy: Legal and Financial Services Cost Over $38 Million

The ongoing FTX bankruptcy saga has resulted in a staggering cost of legal fees, as revealed by recent court filings. In January alone, the total bill for legal work and expenses reached $38 million.

Sullivan & Cromwell Lead Billing With $16.8 Million

Among the firms involved in the case, Sullivan & Cromwell has emerged as the biggest beneficiary. As the counsel responsible for discovery, asset disposition, and asset analysis/recovery, the firm submitted an invoice for $16.8 million to cover the 14,569 hours of legal work performed in January. This is a significant improvement for Sullivan & Cromwell after they had faced to risk of being removed from the case in December due to objections from both Department of Justice and Sam Bankman-Fried regarding potential conflict of interest issues. However, their involvement was approved by a Delaware Court late January allowing them to remain on board with this saga..

Quinn Emmanuel Urquhart & Sullivan Charges $1.4 Million

Other legal firms were able to scoop smaller mouthfuls out of pot with Quinn Emmanuel Urquhart & Sullivan billing only 1$4m as Special Counsel responsible for asset analysis and recovery alongside avoidance actions while Landis Rath & Cobb came away from January with smallest take charging only 663k$ handling hearings litigation and asset disposition collectively legal expenses accounted just shy 18m$ (around 50%)

Financial Services Take Second Stage

On financial side industry services firm Alvarez & Marsal submitted largest charge billing 12$3m combined 5644 hours working on avoidance action financial analysis accounting followed by AlixPartners retained on case conduct forensic analysis DeFi products tokens they billed 2$1m 2454 hours work finally investment bank Perella Weinberg Partners continued charge monthly fee 450k$ responsible devising restructuring strategy so far firm focused sale LedgerX FTX create liquidity creditors also an additional 325k spent expenses almost 20k food month alone Alvarez Marsal rising become one major players 68% overall expenses costs

Summary

The FTX bankruptcy continues to incur high costs due to expensive lawyers’ fees reaching over 38 million dollars in January 2021 alone . Firms such as Sullivan&Cromwell lead billing with 16 8 milion dollars , Quinn Emmanuel Urquhart&Sullivan charging 1 4 milion dollars , Landis Rath&Cobb 663 k$,Alvarez&Marsal 12 3 milion dollars , AlixPartners 2 1milon dollars and Perella Weinberg Partners 450 k$. All these payments add up which makes it difficult to stay afloat during these times .

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