FTX lawyers working on the crypto exchange’s bankruptcy case paid nearly $40 million in fees in January, according to documents filed in court.
The attorney is part of a group of legal experts hired to assist FTX in its Chapter 11 bankruptcy case, which it filed last year after the exchange faced a series of legal challenges and financial difficulties.
High legal fees have raised concerns among some creditors and stakeholders, who question whether the fees are reasonable and necessary for bankruptcy proceedings.
FTX Legal Team Reportedly Hires 180 Legal Counsel
Three firms, totaling more than 180 lawyers, have been assigned to the case, as well as more than 50 non-lawyer staff members such as paralegals.
Sullivan & Cromwell has been retained as counsel by the bankruptcy administrator. They also hired Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb to serve as special counsel in the process.
according to court documents, Sullivan & Cromwell billed $16.8 million for 14,569 hours of work in January. Quinn Emanuel Urquhart & Sullivan billed $1.4 million, while Landis Rath & Cobb paid $663,995.
Image: DWI Springfield
Alvarez & Marsal and Perella Weinberg Partners, two financial services firms, were also detained. His responsibilities include sifting through FTX accounts to discover whether assets are salable. Alvarez & Marsal paid $12.3 million in January.
US Department of Justice initially opposed FTX hired Sullivan & Cromwell, citing potential conflicts of interest. The firm was finally approved to continue representing FTX by a US bankruptcy court judge in Delaware.
John Ray III, who became CEO of FTX in November and was previously involved in helping clean up energy company Enron, reportedly sent a bill for $305,565 for the month of February.
Former FTX CEO Sam Bankman-Fried also denied that the company was hired by the bankruptcy administrator, alleging that the law firm’s personnel pressured him to file for bankruptcy protection in November.
FTX Investor Status
It is not known when or if other FTX customers will be able to access their funds again. In the presentation, the company indicated that it will continue to inform customers about developments.
The defunct crypto company claims to have discovered a shortage of almost $9 billion in customer funds that cannot be accounted for.
BTCUSD retreats deeper from its $23,000 handle to trade at $22,07. on the daily chart | Chart: TradingView.com
In court documents filed in January, the law firm representing the bankrupt exchange said it had found $5.5 billion in crypto and fiat assets in customer accounts and other business divisions.
According to reports, FTX processes about $11.2 billion in customer deposits. Only about $2.6 billion, though, can be considered.
In the latest update, FTX Debtors seeks to release $9 billion or more value to shareholders of Grayscale Bitcoin and Ethereum Trusts.
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