The Cryptocurrency exchange FTX’s legal and consulting teams have secured a combined total of $103 million during the first quarter of the year, as the company navigates through bankruptcy proceedings, as per a report.
In Q1, FTX advisors invoiced the insolvent company for an astonishing $103 million.#FTX #FTT #BTC #crypto2023
— Cryptberg- Trusted Crypto Community (@cryptberg) May 3, 2023
According to a court filing on May 2, there were five firms that billed FTX a sum of $36.4 million in March alone. These firms included Sullivan & Cromwell, Alvarez & Marsal, AlixPartners, Quinn Emanuel Urquhart & Sullivan, and Landis Rath & Cobb.
However, Sullivan & Cromwell, a New York-based law firm, consistently billed the highest amounts, reaching $14.1 million in March and a total of $44.4 million throughout Q1.
It was gathered that the firm’s partners earned $2,165 per hour, while paralegals and legal analysts received $425 and $595 per hour, respectively.
Alvarez & Marsal, a consulting firm, billed the second-largest amount, invoicing over $13.8 million in March for its finance and accounting work. The firm has provided restructuring advice for FTX since its bankruptcy filing on November 11.
In Quarter one, Alvarez & Marsal billed over $10 million each month, marking three consecutive months of high billing.
Meanwhile, Quinn Emanuel Urquhart & Sullivan and Landis Rath & Cobb, two other law firms involved in FTX’s bankruptcy case, billed $3.19 million and $644,000 in March, bringing their Q1 totals to $7.3 million and $1.9 million, respectively.
It should be noted that Landis Rath & Cobb has mainly focused on attending court hearings and managing litigation procedures in the capacity of FTX’s special counsel.
Since the beginning, the FTX case has been assigned to over 180 lawyers from Sullivan & Cromwell, Quinn Emanuel Urquhart & Sullivan, and Landis Rath & Cobb. Other forensics consulting firms like AlixPartners have also been involved.
FTX Exchange Eyes Return
Following the relentless efforts of FTX lawyers and consultants, it was gathered that they have been able to recover $7.3 billion in assets for the bankrupt company.
As a result, the legal team is hopeful that the bankrupt crypto exchange platform will likely relaunch on or before April 2024. Meanwhile, the investigation into the indiscriminate collapse of the exchange is still in progress. More importantly, justice must be served and users’ interests must be protected.