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FTX loses $53,000 an hour due to ‘bankruptcy costs’

Latest compensation filings show that in the last three months ending Oct. 31, defunct crypto exchange FTX spent nearly $53,000 per hour on bankruptcy lawyers and advisors.

Documents deposited Reports filed in court from Dec. 5 to Dec. 16 show bankruptcy attorneys billed at least $118.1 million between Aug. 1 and Oct. 31. That works out to $1.3 million per day, or $53,300 per hour, for 92 days.

The heaviest bill belonged to the management consultancy company Alvarez and Marshall. invoiced $35.8 million for his services.

Alvarez and Marshall billed FTX a total of $35.8 million in commissions. Source: CourtListener

In second place was the law firm Sullivan & Cromwell. he billed $31.8 million for his services. The average hourly rate for Sullivan & Cromwell’s services was $1,230.

Sullivan and Cromwell’s services cost FTX creditors $1,230 per hour. Source: CourtListener

AlixPartners, global consultancy, invoiced $13.3 million during the reporting period for professional services related to criminal investigations. Quinn Emanuel Urquhart and Sullivan invoiced Total revenue for other smaller consulting firms was over $26.8 million, compared to $10.4 million in the same period.

Figures shared by a fake FTX creditor in a post published on December 17

We’re sharing a tweet about X — Mr. Purple ️ (@MrPurple_DJ) December 17, 2023

BTW @lopp estimates remaining professional expenses will total $1.8 billion, up from $1.45 billion. The Estate currently turns over $0.5 billion a year, and failures are no short success.

To date, the fees claimed in less than a year are as follows (approximately $350 million has been paid):

In the meantime reports Precedent determination submitted Dec. 5 by court-appointed wage examiner Katherine Stadler. “Major areas of concern” with invoices submitted between May 1 and June 31 by larger consulting firms including Sullivan & Cromwell, Alvarez & Marshall and others.

“The Pay Examiner identified apparent overstaffing, excessive meeting attendance, non-business travel time compensation, and various technical and procedural deficiencies with respect to some time postings (including indefinite and flat rate bookings).”We read in the report on the bills submitted by Alvarez & Marshall.

Consultancy firms have been criticized by the Fee Reviewer for excessive billing. Source: CourtListener

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