FTX paid $32.5 million to its bankruptcy lawyers in February, more inside

• In February, FTX’s bankruptcy proceedings totaled 32.5 million. 
• This excluded current CEO John J. Ray III’s $305,000 payment.

According to court filings between 4 – 10 April, during the month of February, the fees of law firms involved in FTX’s bankruptcy proceedings totaled around $32.5 million.

The law firm Quinn Emanuel Urquhart and Sullivan sought over $2.7 million in reimbursements for February. The firm’s partners charged between $1,246 and $1,917 per hour, while associates charged between $747 and $1,183 per hour.

The firm’s total number of hours billed was nearly 2,610. The law firm Alvarez and Marsal and forensic investigation consultant Alix Partners disclosed their February fee statements, which totaled more than $11.9 million and $3.6 million, respectively.

Law firm Sullivan and Cromwell demanded the largest amount, as they presented a bill of $13.4 million. Additionally, in February, FTX paid investment banking firm Perella Weinberg Partners $77,891. Moreover, they paid bankruptcy co-council Landis Rath and Cobb $582,604 in the same month.

FTX restructuring chief John J. Ray III paid $1,300 per hour

The figure of $32.5 million did not include compensation for restructuring chief and current CEO John J. Ray III, who received $305,000 in February. Ray’s March remuneration was similar, with a filing showing his total fees and expenses were $329,173.

The FTX chief was paid $1,300 per hour and reportedly worked 255.9 hours for the period of 1-31 March. Thus, Ray’s fees totaled $327,470, with the remaining $1,703 used for tickets, hotel, transportation, meals, and other expenses.

Advisors and lawyers for the bankrupt exchange were paid a similar sum in January, with FTX paying $34.18 million for their combined services.

The fees, reimbursements, and expenditures paid by FTX to its legion of lawyers, associates, paralegals, accountants, investigators, directors, and executives remain difficult to swallow for customers who have yet to be compensated.