{"id":410046,"date":"2023-06-20T13:00:33","date_gmt":"2023-06-20T13:00:33","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=410046"},"modified":"2023-06-20T13:30:05","modified_gmt":"2023-06-20T13:30:05","slug":"ftx-legal-fees-surpass-120-million-in-only-three-months","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ftx-legal-fees-surpass-120-million-in-only-three-months","title":{"rendered":"FTX Legal Fees Surpass 120 Million in Only Three Months"},"content":{"rendered":"<p><span style=\"font-weight: 400\">In a Twitter post on Tuesday, June 20, a US-based crypto research platform, the Block, revealed that FTX\u2019s expenses and costs of legal, bankruptcy, and financial advisors exceeded $19.6 million in 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The firms that billed include Sullivan &amp; Cromwell, Quinn Emanuel Urquhart &amp; Sullivan, Landis Rath &amp; Cobb, AlixPartners, and Jefferies. <\/span><span style=\"font-weight: 400\">Meanwhile,<a href=\"https:\/\/insidebitcoins.com\/news\/japans-crypto-exchanges-rally-for-10x-leverage-on-margin-trading-bloomberg\"> crypto<\/a> enthusiasts and former customers are optimistic about a possible exchange reboot amid the regulatory issues around it.<\/span><\/p>\n<ul>\n<li>\n<h3>FTX Financial Crisis Worsens as Financial, Legal, and Advisory Expenses Continue to Increase<\/h3>\n<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.theblock.co\/\"><span style=\"font-weight: 400\">The Block Research<\/span><\/a><span style=\"font-weight: 400\"> report shows that expenses and fees accrued by FTX exchange mounted up to $121.8 million.\u00a0<\/span><span style=\"font-weight: 400\">These were from the crumbling exchange\u2019s bankruptcy, legal, and financial costs from February until April.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In just three months, the exchange\u2019s top legal, bankruptcy, and financial advisors billed the organization over $19.6 million in costs for total work hours and work done in 2022.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition, over $10 million emanated from the work performed in November 2022, when Sam Bankman-Fried\u2019s <a href=\"https:\/\/insidebitcoins.com\/news\/edx-crypto-exchange-goes-live-backed-by-citadel-and-fidelity\">crypto<\/a><\/span><span style=\"background-color: var(--bs-body-bg);color: var(--bs-body-color);font-family: var(--bs-body-font-family);font-size: var(--bs-body-font-size);text-align: var(--bs-body-text-align)\">\u00a0platform was declared bankrupt.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A court-ordered interim compensation scheme instituted that the companies will initially be paid about $15.5 million or more, or circa 80% of the value of their efforts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Among the companies that billed FTX are Landis Rath &amp; Cobb, Sullivan &amp; Cromwell, and Quinn Emanuel Urquhart &amp; Sullivan: financial advisor AlixPartners and professional advisor Alvarez &amp; Marsal. <\/span><span style=\"font-weight: 400\">The work billed by the firms included handling meetings with other firms that also billed FTX for their time and expertise.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The crypto exchange\u2019s legal partners at Sullivan &amp; Cromwell billed the exchange $37.6 million for the period, totaling 30.9% of the overall fees.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0The restructuring consultants at Alaverez &amp; Marsel charged $37 million, followed by Quinn Emanuel Urquhart &amp; Sullivan, Landis Rath &amp; Cobb, and AlixPartners.<\/span><\/p>\n<ul>\n<li>\n<h3>Possible Turn Around For FTX<\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Amid the uprising financial crisis of the FTX exchange, former investors are hopeful of a possible turnaround for operations and the value offered to the customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">One of the optimistic pundits is the CIO at <\/span><a href=\"https:\/\/www.ikigai.fund\/\"><span style=\"font-weight: 400\">Ikigai Asset Management<\/span><\/a><span style=\"font-weight: 400\">, Travis Kling, who once stated that a reboot of the exchange is the best option in a time like this.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Ikigai was a primary investor and stakeholder at the FTX exchange before and during its crackdown.\u00a0<\/span><span style=\"font-weight: 400\">Another pundit of the FTX relaunch is the anonymous crypto expert and investor by the name of Loomdart.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Loomdart is <\/span><a href=\"https:\/\/twitter.com\/loomdart\/status\/1658899301068677134?\"><span style=\"font-weight: 400\">one of the leaders<\/span><\/a><span style=\"font-weight: 400\"> of the FTX 2.0 movement, and he believes that the current regulatory crisis faced by Coinbase and Binance provides an excellent opportunity for FTX. <\/span><span style=\"font-weight: 400\">Notably, FTI Consulting billed a total fee of $761,997.70 for 686.8 hours on a project titled \u201cExchange restart.\u201d<\/span><\/p>\n<p><strong>Read more:\u00a0<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/insidebitcoins.com\/news\/ftx-was-doing-billions-in-business-in-africa-heres-all-you-need-to-know\">FTX Was Doing Billions in Business in Africa \u2013 Here\u2019s All You Need to Know<\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">\n            <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">In a Twitter post on Tuesday, June 20, a US-based crypto research platform, the Block, revealed that FTX\u2019s expenses and costs of legal, bankruptcy, and <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/ftx-legal-fees-surpass-120-million-in-only-three-months\" title=\"FTX Legal Fees Surpass 120 Million in Only Three Months\">[&#8230;]<\/a><\/div>","protected":false},"author":1912,"featured_media":410052,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[10079,13247],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.0 (Yoast SEO v22.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FTX Legal Fees Surpass 120 Million in Only Three Months - InsideBitcoins.com<\/title>\n<meta name=\"description\" content=\"The Block revealed that FTX\u2019s expenses and costs of legal, bankruptcy, and financial advisors exceeded $19.6 million in 2022.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/410046\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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