According to the documents submitted (1) to the bankruptcy court, some of the most prominent bankruptcy, legal, and financial consultants and lawyers of FTX have invoiced an astounding $19.6 million in fees for the work that was completed in 2022. Over ten million dollars, or fifty percent of the total, was listed as a charge for November 2022, which was the month that FTX filed for bankruptcy.
Details of the Attorneys Work in FTX Case
The legal firms will initially earn little over $15.5 million, which is equivalent to 80 percent of the value of their work according to the interim compensation scheme authorized by the court.
Landis Rath & Cobb, Sullivan & Cromwell, and Quinn Emanuel Urquhart & Sullivan are just a few law firms that have billed FTX after filing their bankruptcy petition.
These businesses have paid FTX for the labor that consists of attending meetings with other companies, which have also billed FTX for the time they spent arranging with former and present FTX workers. Landis Rath & Cobb and Sullivan & Cromwell, two of FTX's principal law firms, have submitted a combined bill for further than $10.7 million for 8400 hours of labor.
Landis Rath & Cobb has charged a total of 1.16 million dollars for the work completed between the 11th and the 30th of November.
On the other side, Sullivan & Cromwell has requested more than $9.5 million in reimbursement for a startling 6,500 billable hours worked between November 12 and November 30.
These billed hours were logged between November 12 and November 30. Approximately half of the hours that can be billed are associated with the work done by partners, who often command the maximum hourly rate.
Per the documents, Sullivan & Cromwell had employed around ten associates to the case. Jim Bromley, a partner at Sullivan, worked 178 hours for the period beginning November 12 and ending November 30 and billed for them all by himself.
The FTX Mess Took a Lot of Time to Unravel
The legal documents filed in court offer a look into the huge amount of labor put into untangling the mess at the crypto currency exchange FTX. At the crypto currency exchange FTX, the attorneys were required to navigate the intricate web of accounts.
Moreover, their investigations also involves discussions with FTX executives and attorneys and employing blockchain explorers to analyze FTX's assets. In addition to that, they went over the "cybersecurity scenarios" that were associated with the FTX crypto currency exchange. During November, these activities spanned many hours.
More than $1.5 million was billed by Quinn Emanuel for the work that was completed in November and December. They delegated a dozen attorneys for the task, of which nine were partners in the firm.
One of those partners, Sascha Rand, billed a whopping $13,000 for only one day's worth of labor. Another Quinn lawyer racked up a charge for $17,000 for a day trip that was classified as "non-working travel."
AlixPartners, a financial consulting business, put in a little over a month's worth of labor between November 28 and December 31, and they submitted a bill for $1.1 million for their services.