Katherine Stadle, the fee examiner for FTX bankruptcy, filed a 47-page analysis of the fees charged by the law organizations during the three months following the bankruptcy of the firm, concluding that they were not “wholly unreasonable in the moment” since “very few firms could have accomplished what these professionals accomplished in 90 days.”
Remarkable Performance from FTX Professionals
The filling reads: “Without question, the fees incurred to date are remarkable, but so is the professionals’ performance.”
Stadler’s research detailed the legal expenses collected by various law firms in the weeks following FTX’s Chapter 11 bankruptcy filing.
242 Attorneys Working on the Case
According to the study, there were 242 attorneys working on the case, and their hourly charges varied from $388 to $2,165, with 46 of them earning more than $2,000 an hour. It demonstrates that 242 attorneys charged 34,954.1 hours to these cases during the first interim fee period.
FTX Team has Requested $200M in Fees
According to Stadler, the FTX team has “requested more than $200 million in fees” since the company’s bankruptcy in November. She added: “Notwithstanding the relative scope of the known asset pool, these proceedings appear on track to be very expensive by any measure.”
Given that the expenses for the restructuring team and attorneys working on the insolvent cryptocurrency exchange FTX have exceeded $200 million in just over seven months, the court appointed Stadler as a fee examiner on March 8, 2023.
Sullivan & Cromwell Presented the Largest Invoice
It’s interesting to note that Sullivan & Cromwell, a legal firm headquartered in New York, has made the largest profit over that period, charging over $42 million in fees and expenditures. Alvarez & Marshal, consultants, came in second and received approximately $28 million in fees and expenditures.
In particular, the closure of the US-based exchange FTX caused concern among several businesses and industry participants. However, it’s significant to note that FTX is anticipated to relaunch considering that the cryptocurrency exchange has successfully recovered about $7.3 billion in liquid assets.