Lawyers picnic: FTX counsel and advisors rake in $34M in January

The instrumentality firms, concern banks and consulting companies moving with FTX connected its bankruptcy lawsuit billed the crypto speech a combined $34.18 cardinal successful January, tribunal documents reveal.

FTX’s main restructuring serviceman and caller CEO, John J. Ray III, besides received a hefty wage package, charging $1,300 an hr to a full of $305,000 successful February according to a Mar. 6 filing.

Fee breakdown of FTX CEO John J. Ray III implicit the period of February. Source: Kroll

Separate tribunal filings connected Mar. 6 amusement United States instrumentality firms Sullivan & Cromwell, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb invoiced $16.9 million, $1.44 million and $684,000 respectively for their services and expenses successful January.

Lawyers and unit of Sullivan & Cromwell billed a full of 14,569 hours for their work, which equates to implicit 600 days. Some partners received up to $2,165 per hr portion the firm’s paralegals and ineligible analysts were making bash with betwixt $425-$595 per hour.

The highest-priced billables were find ($3.5 million), plus disposition ($2.2 million) and wide probe enactment ($2 million).

Sullivan & Cromwell’s interest connection arsenic counsel to FTX Trading for the period of January. Source: Kroll

It submitted different hefty $7.5 cardinal measure to FTX for the archetypal 19 days of February.

Ray played a important relation successful keeping Sullivan & Cromwell connected committee arsenic ineligible counsel, having filed a court motion connected Jan. 17 arguing that Sullivan & Cromwell had been integral successful taking power implicit the “dumpster fire” that was handed to him.

His filing came successful effect to an objection to the retention of the instrumentality steadfast connected Jan. 14 by U.S. Trustee Andrew Vara, who claimed that Sullivan & Cromwell had failed to sufficiently disclose its connections and anterior enactment for FTX.

FTX’s peculiar counsel Landis Rath & Cobb spent overmuch of its moving hours attending tribunal hearings and litigation procedures. For its efforts, the steadfast billed the FTX administrators $684,000 including expenses.

Between the 3 instrumentality firms, implicit 180 lawyers and implicit 50 non-lawyer unit worked connected the case, astir of who came from Sullivan & Cromwell.

Forensics consulting steadfast AlixPartners billed $2.1 cardinal for January. Almost fractional of the firm’s hours were spent connected forensic investigation of decentralized concern (DeFi) products and tokens successful FTX’s possession.

Consulting steadfast Alvarez & Marsal invoiced for $12.5 cardinal for implicit 17,100 hours it committed to avoidance actions, fiscal investigation and accounting procedures.

A breakdown of Alvarez & Marsal’s monthly interest connection by project, hours and fees for the period of January: Source: Kroll

Related: Breaking down FTX’s bankruptcy: How it differs from different Chapter 11 cases

Investment slope Perella Weinberg Partners billed a monthly work interest of $450,000 positive much than $50,000 successful expenses for readying a restructuring strategy and engaging successful correspondence with 3rd parties.

With FTX’s proceedings acceptable for October, determination are astatine slightest different six months of ineligible enactment to bash for the instrumentality firms involved. Recent reports person estimated that the fees could scope successful the hundreds of millions by the clip the lawsuit is over, which could perchance rival the $440 cardinal successful fees that New York-based instrumentality steadfast Weil Gotshal made from the infamous Lehman Brothers bankruptcy successful 2008.