Professional Services Charged $13.3 Million in Forensic Investigations: Bankruptcy Attorneys Cost $118.1 Million

Summary

New pay documentation reveals that the now-defunct cryptocurrency exchange FTX spent approximately $53,000 per hour on bankruptcy attorneys and advisors in the three months ending October 31. The bankruptcy attorneys charged a minimum of $118.1 million from August 1st to October 31st. Furthermore, professional services related to forensic investigations were charged $13.3 million over the year by global consulting company AlixPartners.

Introduction

Court documents filed between December 5th and 16th reveal that the bankruptcy attorneys hired by FTX charged a minimum of $118.1 million from August 1st to October 31st, totaling $53,300 per hour over 92 days. Alvarez and Marshall, a management consulting company, accumulated the highest expenses at $35.8 million during this time frame. Sullivan & Cromwell, an international law firm, ranked second with fees of $31.8 million. Additionally, professional services related to forensic investigations were charged $13.3 million by AlixPartners, with smaller advising firms billing over $26.8 million.

Main Points

• Bankruptcy attorneys hired by FTX charged a minimum of $118.1 million from August 1st to October 31st, at an hourly rate of $53,300.
• Alvarez and Marshall accumulated the highest expenses at $35.8 million during the same time frame.
• Sullivan & Cromwell, an international law firm, ranked second with fees of $31.8 million, charging on average $1,230 per hour.
• AlixPartners, a global consulting company, charged $13.3 million for professional services related to forensic investigations over the year.
• Smaller advising firms billed over $26.8 million, with Quinn Emanuel Urquhart & Sullivan accounting for $10.4 million.

Conclusion

The bankruptcy attorneys hired by FTX charged a significant amount of money, totaling $118.1 million, from August 1st to October 31st. Other professional services related to forensic investigations also incurred substantial costs, with AlixPartners charging $13.3 million over the year. The billing practices of larger advising firms, such as Alvarez and Marshall and Sullivan & Cromwell, have raised concerns regarding their expenses. These legal expenses add up to a total of over $350 million since the start of the bankruptcy lawsuit against FTX.

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