Crypto trade FTX has been burning via roughly $53,000 each hour over the three months ending Oct. 31 — simply on chapter legal professionals and advisers, the most recent spherical of compensation filings present.
Courtroom filings from Dec. 5 to Dec. 16 have proven that the chapter legal professionals have charged an accrued whole of not less than $118.1 million between Aug. 1 and Oct. 31. Over the 92 days, this equates to $1.3 million per day or $53,300 per hour.
The most important invoice got here from the administration consulting agency Alvarez and Marshall, which charged $35.8 million for its providers for the three months.
Coming in second place was world regulation agency Sullivan and Cromwell, which charged $31.8 million for its providers. The hourly charge for Sullivan’s and Cromwell’s providers averaged $1,230 per hour.
International consulting agency AlixPartners charged $13.3 million within the interval for skilled providers referring to forensic investigations. Quinn Emanuel Urquhart & Sullivan charged $10.4 million in the identical interval, whereas a number of different billings from smaller advisory corporations added as much as over $26.8 million.
Figures shared by a pseudonymous FTX creditor in a Dec. 17 publish to X (previously Twitter) counsel the entire authorized charges which were totally paid because the FTX chapter case started is roughly $350 million.
BTW @lopp this estimates $1.45B of remaining skilled charges for a complete of $1.8B. The Property is at the moment charging $0.5B per yr and bankruptcies aren’t brief endeavors.
To this point, listed below are the charges which were petitioned in slightly below 1 yr (~$350mm has been paid): https://t.co/fZhMyTE3B1 pic.twitter.com/5p6at5ZbWy
— Mr. Purple ️ (@MrPurple_DJ) December 17, 2023
Associated: FTX debtors assess worth of crypto claims based mostly on petition date market costs
In the meantime, an earlier report filed on Dec. 5 by the court-appointed charge examiner, Katherine Stadler, recognized “important areas of concern” with the billings submitted by the bigger advisory corporations, together with Sullivan and Cromwell, Alvarez and Marshall, and others between Might 1 and June 31.
“The Charge Examiner recognized apparently top-heavy staffing, apparently extreme assembly attendance, charges associated to non-working journey time, and varied technical and procedural deficiencies with respect to a while entries (together with obscure and lumped entries),” wrote the report concerning the billings submitted by Alvarez and Marshall.
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