FTX Bankruptcy: How Law Firms Racked Up a Whopping $103 Million

The Price of Legal Expertise

As the ashes of FTX’s once-mighty empire settle, the lawyers and consulting firms helping the cryptocurrency exchange navigate its bankruptcy seem to be cleaning up quite nicely. With a staggering $103 million set to flow into the coffers of these legal eagles over the first quarter, March turned out to be especially lucrative.

March Madness: Who’s Getting Paid?

In March alone, a hearty handful of firms, including Sullivan & Cromwell and Alvarez & Marsal, racked up a combined bill of $36.4 million, significantly higher than the preceding months. It’s clear that when money is at stake, everyone wants a piece of the pie.

The Big Spenders

Leading the pack was New York-based Sullivan & Cromwell, which alone pulled in $14.1 million in March. That’s some serious cash! With 180 lawyers working furiously on the case, their hourly rates clock in at a dazzling $2,165 for lead attorneys, while paralegals are earning a humble $425. Talk about making it rain!

Consultancy Contributions

Next in line was Alvarez & Marsal, sending FTX a bill that stretched beyond $13.8 million for March. This firm has been crucial to restructuring efforts, demonstrating that when it comes to bankruptcy, more hands — and fees — make lighter work. They’ve billed over $10 million on multiple occasions, proving that what doesn’t break you can certainly bank you.

Supporting Players in the Game

Other players in the courtroom game include Quinn Emanuel Urquhart & Sullivan, which billed $3.19 million, and Landis Rath & Cobb, with $644,000 for March. With such hefty invoices being racked up, one has to wonder if these firms are actually lawyers or just very expensive therapists for FTX executives still reeling from the financial fallout.

The Road to Recovery

Despite the legal costs piling high, FTX hasn’t thrown in the towel yet. The company has managed to recover $7.3 billion in assets, and the legal team is cautiously optimistic about a possible comeback for the trading platform in April 2024. Perhaps they’re ready to rise from the ashes like a phoenix, albeit one with a ledger full of legal fees.

The Future is Bright, If Expensive

While FTX grapples with its financial revival, it seems clear that the law firms assisting aren’t exactly losing sleep over it. With lucrative contracts and an army of lawyers working the case, one can’t help but admire — or pity — the financial juggernaut that is modern-day bankruptcy proceedings.