During February, bankrupt crypto exchange FTX spent over $30 million on its legal defence.
Recently disclosed legal expenses for FTX, a bankrupt cryptocurrency exchange, reveal an astonishing amount of money spent during February.
The monthly fee statements for February, related to FTX's bankruptcy proceedings, were detailed in court filings from April 4th to April 10th.
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Several law firms were involved in the process, with the combined legal expenses reaching an estimated $32.5 million.
It is worth noting that this amount does not include the payment made to restructuring chief and CEO John J. Ray III, who received $305,000 in February. Ray's compensation in March was of a similar magnitude, with an April 10th filing indicating total fees and expenses of $329,173.
Charging $1,300 per hour, Ray allegedly worked 255.9 hours between March 1st and March 31st, accumulating fees worth $327,470. The remaining $1,703 covered expenses such as air travel, transportation, lodging, meals, and other costs.
One of the participating law firms, Quinn Emanuel Urquhart and Sullivan requested over $2.7 million in reimbursements for February. The firm's partners billed rates ranging from $1,246 to $1,917 per hour, while associates charged between $747 and $1,183 per hour.
Sullivan and Cromwell, another law firm, claimed the largest amount, invoicing more than $13.4 million for work completed on FTX's behalf in February by their extensive team of lawyers and associates. Law firm Alvarez and Marsal asked for $11.9 million for their services, while forensic investigation consultant Alix Partners stated that FTX owes the company $3.6 million.
On the lower end of the spectrum, investment banking firm Perella Weinberg Partners billed $77,891, while bankruptcy co-counsel Landis Rath and Cobb invoiced $582,604 for their services in February.
FTX's ongoing bankruptcy struggles are accompanied by soaring legal expenses, as evidenced by the $32.5 million reported for February alone. In January, FTX lawyers billed the crypto exchange for $34.18 million.
In other FTX-related news, prominent media outlets challenged the withholding of crypto exchange FTX non-US customers' identities.
