2 - 4 minute read
The lawyers and consulting firms helping cryptocurrency exchange FTX navigate its bankruptcy proceedings are set to make a massive sum of $103 million over the first quarter. The invoices from March alone were slightly higher than January and February’s figures, totaling $36.4 million. Sullivan & Cromwell, a New York-based law firm, billed FTX the most at $14.1 million for March, while consulting firm Alvarez & Marsal invoiced over $13.8 million for the month. The other firms involved, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb, respectively billed FTX $3.19 million and $644,000 for March.
The bankruptcy proceedings for FTX have been in motion since November 11, 2022. Despite the troubled six months, FTX has not put the nail in the coffin yet. The legal team has recovered $7.3 billion in assets and is eyeing a potential reboot of the trading platform as early as April 2024.
The fact that the lawyers and consulting firms are set to make such a large sum of money in just the first quarter of the bankruptcy proceedings raises questions about the cost-effectiveness of the entire process. It is important to note that these firms have committed tens of thousands of hours to avoidance actions, financial analysis, and accounting procedures. However, it is still a staggering amount, and traders need to be aware of the implications.
The Bottom Line
The bankruptcy proceedings of FTX have been in motion for six months, and the lawyers and consulting firms involved are set to make a total of $103 million over the first quarter. This raises questions about the cost-effectiveness of the entire process and its potential impact on the future market moves of FTX. Traders should keep an eye on the situation and adjust their strategy accordingly.