FTX Bankruptcy: $19.6M in Legal Fees in Just 51 Days!
• Court documents have revealed that FTX has spent over $19.6 million on legal and financial advisors for its bankruptcy case in just 51 days.
• On the defense team, there are 151 staff members including attorneys, accountants, and strategic advisors.
• This includes an invoice of $40,000 for one day’s representation at the first FTX bankruptcy hearing, as well as a $2.56bn bill from Lehman Brothers‘ bankruptcy saga.
FTX Incurs Staggering Legal Fees
Court documents have revealed that FTX has racked up over $19.6 million in legal and financial advisor fees in just 51 days since filing for bankruptcy protection. The defense team consists of 151 staff members including attorneys, accountants, and strategic advisors.
Sullivan & Cromwell Biggest Share
The biggest share of this legal tab was taken by Sullivan & Cromwell who charged a whopping $6.28m for their 6500 hours of work between November 12 – 30th. This included a single invoice of $40,000 for one day’s representation at the first FTX bankruptcy hearing.
Quinn Emanuel Also Bill FTX
Quinn Emanuel also billed FTX $1.5m after deploying 12 lawyers to the case to the tune of $17,000 a day. Legal costs reflect the immense complexity behind this case with a huge web of 100 entities to work through at a transactional level in reference to accounting compliance.
Lehman Brothers Bankruptcy Costs
Jaw-dropping legal bills are not uncommon in corporate bankruptcies such as Lehman Brothers‘ which cost a sensational $2.56bn however these fee statements show the feeding frenzy that has engulfed this case as it aims to return funds to creditors rather than squeeze all juice from the lemon itself..
Judge Appoints Independent Examiner
Bankruptcy Judge John Dorsey is currently considering appointing an independent examiner to the case which will incur an extra cost of approximately $100m alleges Sam Bankman-Fried – though this remains to be seen as talks continue around finding funds for creditors and repaying debtors alike…