Despite facing bankruptcy, FTX’s debt seems to be rising at an alarming rate, especially with the recent billing which it received from its advisers. For the first quarter of this year, both lawyers and accounting firms which have been involved in the bankruptcy proceedings of the embattled cryptocurrency exchange submitted a fat invoice of $103 million.
So far, the exchange has worked with a handful of advisers including Sullivan & Cromwell, Alvarez & Marshal, AlixPartners, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb.
More than 180 lawyers from these law firms have been representing FTX. Collectively, they submitted a bill of $34.2 million in January and another $32.5 million in February. By the end of March, FTX received a bill of $36.4 million from them, rounding it up to $103.1 million.
Sullivan & Cromwell Receives Fattest Cheque From FTX
Of all the advisers, New York-based law firm Sullivan & Cromwell left with a significant percentage of the cheque. For March alone, Sullivan & Cromwell billed the Bahamian-headquartered crypto exchange $14.1 million for its services. This is in addition to the $44.4 million which it received in both January and February this year.
Consequently, partners at the law firm received $2,165 per hour while other positions received a lesser amount. Paralegals and legal analysts were paid $425 and $595 per hour respectively.
FTX Bankruptcy Accounting Services Cost Almost $25M
Following Sullivan & Cromwell closely is the finance and accounting firm Alvarez & Marsal. The consulting firm went home with a cheque of $13.8 million in March. Notably, Alvarez & Marsal provided FTX with services like avoidance actions, financial analysis and accounting procedures during the bankruptcy proceedings.
This recent billing adds to more than $10 million which the consulting firm has received over the last five months since November. Over Q1 2023, FTX has received a bill of $7.3 million and $1.9 million from Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb respectively.
FTX Former CEO to Appear in Court in October
Meanwhile, FTX former Chief Executive Officer (CEO) Sam Bankman-Fried is still scheduled to have his court hearing in October later this year. After his release based on a $250 million bail bond, the young billionaire pleaded not guilty to all eight charges against him in New York at the beginning of 2023.
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