FTX, the troubled crypto exchange, and its affiliated companies have incurred more than $20 million in legal and consulting fees since filing for bankruptcy protection in November.
The company, which has since installed a new CEO and retained three law firms and two consulting firms, is undergoing a complex and expensive wind-down process. The initial bills highlight the cost of FTX’s bankruptcy case and could reduce the amount of return creditors will receive.
According to FTX’s new leadership, the exchange and other entities in Chapter 11 bankruptcy in the US held approximately $1.4 billion as of December 31, primarily with Alameda Research and West Realm Shires.
The largest bill was sent by law firm Sullivan & Cromwell, charging FTX $9.5 million for 6,561 hours of work from November 12 to November 30, along with $105,000 for expenses.
The second most expensive bill came from consulting firm Alvarez & Marsal, which charged FTX $6.3 million for 7,925 hours of work from November 11 to November 30.
Other law firms and consulting firms, including Quinn Emanuel Urquhart & Sullivan, Landis Rath & Cobb, and AlixPartners, also sent bills totaling millions of dollars.
FTX CEO John Ray disclosed his own fees in the court filings, billing the company $694,000 for 538 hours of work from November 11 to December 31 through his firm, Owl Hill Advisory.
The legal and consulting fees incurred by FTX serve as a reminder of the complexity and cost of unwinding a global crypto giant.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
Related posts
Turnkey Raises $15M Series A to Revolutionize the Crypto User Experience
Staking on Bitcoin, SatoshiDEX Staking for Presale Investors is now Live
