FTX Bankruptcy Costs Soar as Lawyers and Advisors Accumulate Over $500 Million in Approved Fees

• FTX bankruptcy costs exceed $700 million, with $500 million in fees approved.
• Top earners include Sullivan and Cromwell with $254 million and Alvarez and Marsel with $133 million.
• FTX CEO John Ray III charged $5.6 million with an hourly rate of $1,300.
• Official Committee of Unsecured Creditors requests $81 million in fees.
• FTX estate plans to repay creditors 118% of allowed claims, facing a class action lawsuit.
• The Block is an independent media outlet with financial disclosures.

Summary :
FTX lawyers and advisors have accumulated over $500 million in approved fees from the estate, as bankruptcy costs continue to rise. The total amount requested for fees and expenses by those overseeing the bankruptcy process exceeds $700 million, although some requests have been reduced by 20% and others are still pending approval. The estate's special counsel, Sullivan and Cromwell, leads the list with $254 million in approved fees, followed by financial advisor Alvarez and Marsel with $133 million. Other firms and advisors, including AlixPartners, Quinn Emanuel Urquhart & Sullivan, Perella Weinberg Partners, and Landis Rath & Cobb, have collectively charged $57 million in fees. FTX CEO John Ray III has charged $5.6 million with an hourly rate of $1,300, while RLKS Executive Solutions, the estate's chief officers, have billed $26 million in total. The Official Committee of Unsecured Creditors and the Ad Hoc Committee have also accumulated their own fees, with the former requesting $81 million and the latter requesting less than $5 million. FTX's recovery plan aims to repay 98% of its creditors at least 118% of their allowed claims, with other creditors receiving full repayment and additional compensation. Sullivan and Cromwell, the estate's special counsel, is facing a class action lawsuit alleging partial responsibility for FTX's collapse.

Sources :

- TheBlock