FTX, the once-prominent cryptocurrency exchange that filed for bankruptcy in November 2022, has paid a hefty sum to legal and consulting firms assisting it through the process.
A total of $103 million was distributed among five firms during the first quarter, reflecting the complexity of FTX’s case.
A Windfall for Legal and Consulting Firms
Over the first quarter, five firms, including Sullivan & Cromwell, Alvarez & Marshal, AlixPartners, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb, billed FTX a combined $103 million.
March saw the highest billing, with the firms charging a combined $36.4 million, slightly higher than January and February’s figures of $34.2 million and $32.5 million, respectively.
New York-based law firm Sullivan & Cromwell took the lion’s share, billing $14.1 million in fees and expenses for March and a total of $44.4 million for the quarter.
The firm’s partners were paid $2,165 per hour, while paralegals and legal analysts received hourly rates of $425 and $595, respectively.
Significant Contributions from Other Firms
Consulting firm Alvarez & Marsal came in second, invoicing over $13.8 million in March for the tens of thousands of hours it dedicated to avoidance actions, financial analysis, and accounting procedures.
This marks the third successive billing of over $10 million for the firm, which has served as FTX’s restructuring advisor since the exchange filed for bankruptcy.
Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb, the other two law firms involved, respectively billed FTX $3.19 million and $644,000 in March, with respective totals of $7.3 million and $1.9 million for the first quarter.
As FTX’s special counsel, Landis Rath & Cobb spent most of its hours in court attending hearings and undergoing litigation procedures.
In total, over 180 lawyers from Sullivan & Cromwell, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb have been assigned to work on the FTX case.
FTX’s Road to Recovery
Forensics consulting firm AlixPartners invoiced its largest bill at $4.51 million in March, totaling $10.2 million over the quarter. The firm has been tasked with analyzing decentralized finance products and tokens in FTX’s possession.
Despite a tumultuous six months, FTX has not yet thrown in the towel. With $7.3 billion in assets recovered, FTX’s legal team is exploring the possibility of reviving the trading platform as early as April 2024.
The substantial investments in legal and consulting support signal FTX’s determination to weather the storm and potentially make a comeback in the cryptocurrency exchange market.
