Current FTX Staff Billed Over $34M for a Month’s Work

The defunct FTX exchange has been charged $34.18 million by its bankruptcy lawyers and consulting firms for professional services rendered in January.

The three law firms representing FTX in its bankruptcy proceedings include Sullivan & Cromwell LLP, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb. Together, the three law firms have over 180 attorneys and over 50 additional personnel working on the matter.

According to different court documents, Sullivan & Cromwell, Quinn Emmanuel Urquhart & Sullivan, and Landis Rath & Cobb each submitted an invoice for services and expenditures in January totaling roughly $16.9 million, $1.44 million, and $684,000, respectively.

In addition, FTX CEO John Ray III, who took over in November 2022, submitted a bill for $305,565 for the month of February at an hourly rate of $1,300.

Ray and other designated officers have been in charge of overseeing all business affairs and giving their approval to material decisions. This has resulted in a huge volume of emails, phone conversations, zoom sessions, and in-person meetings.

Furthermore, the bankrupt FTX engaged the services of Alvarez & Marsal and Perella Weinberg, financial services firms. Their responsibility is to comb through FTX accounts and identify the assets that can be sold. Alvarez & Marsal had the second-highest billing for the month at $12.3 million, just below Sullivan & Cromwell.

FTX CEO Wants Options to Revive the Exchange

Reviving a bankrupt exchange can be a challenging task, but it is possible with the right approach and strategies. Ray is, therefore, discussing the possibility of restarting the platform.

The new CEO explained in an interview that his team is exploring the option of either restarting the exchange or liquidating its assets. Additionally, he stated that the company is closely collaborating with stakeholders to determine which aspects of the business are sustainable.

Remarkably, Ray has also made an effort to recover the monies that Sam Bankman-Fried, FTX’s ex-CEO, gave to political parties and charities. However, some monies have already been spent, and moved through a number of routes, making it potentially difficult to retrieve them.