Legal and Advisory Fees in FTX Bankruptcy Surpass $500 Million

Approved payments for consultants and lawyers involved in the FTX bankruptcy proceedings have exceeded $500 million, reports The Block.

In total, their requests amounted to over $700 million. However, some claims were reduced by 20%, and others were not approved.

Leading the list is the law firm Sullivan & Cromwell, with approved fees of $254 million (bills were submitted for $360 million).

Financial consultant Alvarez & Marsal earned $133 million.

Other recipients of payments included forensic specialist AlixPartners, law firm Quinn Emanuel Urquhart & Sullivan, investment banker Perella Weinberg Partners, and additional counsel Landis Rath & Cobb. They collectively received $57 million in fees.

Since the beginning of the process, FTX CEO John Ray III has requested $5.6 million at an hourly rate of $1300. Restructuring managers from RLKS Executive Solutions have billed a total of $26 million.

Independent of the professionals serving the debtors, the Official Committee of Unsecured Creditors has requested funds to cover its expenses. Its lawyers and financial consultants expect $81 million in fees and $1.5 million for expenses.

In early May, FTX presented a new compensation plan, under which 98% of investors would receive at least 118% of their claim amounts. Creditors criticized the proposal.

Back in March, the founder of the exchange, Sam Bankman-Fried, was sentenced to 25 years in prison. His lawyers appealed the decision.