New pay documentation has unveiled that the now-defunct crypto exchange FTX spent a staggering $53,000 per hour on bankruptcy attorneys and advisors during the three months ending October 31.
According to court documents filed between December 5th and 16th, bankruptcy attorneys charged a minimum of $118.1 million from August 1st to October 31st. This amounts to a total of $1.3 million for all 92 days, translating to an astonishing $53,300 an hour.
Among the notable expenses, management consulting company Alvarez and Marshall took the lead, accumulating $35.8 million over the specified time frame.
Sullivan & Cromwell, an international law firm, secured the second position with fees amounting to $31.8 million. Sullivan & Cromwell’s services came at an average hourly charge of $1,230.
Additionally, global consulting company AlixPartners charged $13.3 million for professional services related to forensic investigations throughout the year.
Several smaller advising firms also contributed to the expenses, with billings surpassing $26.8 million, out of which Quinn Emanuel Urquhart & Sullivan accounted for $10.4 million.
Discrepancies were reported in the billings submitted by larger advising firms, including Sullivan & Cromwell and Alvarez & Marshall, for the period between May 1 and June 31.
A report issued on December 5 by court-appointed fee examiner Katherine Stadler pointed out “significant areas of concern” with these billings.
Concerns included apparent top-heavy staffing, excessive meeting attendance, fees for non-working travel time, and various technical and procedural deficiencies in time entries.
The total amount spent on legal expenses since the initiation of the bankruptcy lawsuit against FTX has surpassed $350 million, as reported by an anonymous FTX creditor in a Twitter post on December 17th.
The excessive spending on bankruptcy advisors raises eyebrows and sparks concerns about the management of resources during FTX’s bankruptcy proceedings.