FTX Bankruptcy Advisers’ Fees Top $200 Million in Seven Months

FTX Trading Ltd. is facing about $200 million in fees owed to lawyers and advisers who are working on the crypto exchange company’s Chapter 11 case.

The billed total for the first seven months of the case is more than 2% of reported estate assets and 10% of reported cash, according to a fee examiner’s summary report filed Tuesday with the US Bankruptcy Court for the District of Delaware.

“Without question, the fees incurred to date are remarkable, but so is the professionals’ performance,” Katherine Stadler, the fee examiner, wrote.

FTX filed for bankruptcy on Nov. 11, 2022, shocking the cryptocurrency market and triggering government investigations and criminal charges. As the case began to move through its “first interim fee” period— from the Chapter 11 filing through Jan. 31, 2023—242 attorneys billed around 35,000 hours. Hourly rates ranged from $388 to $2,165, according to the filing.

Sullivan & Cromwell LLP charged the largest amount—about $42 million in fees and expenses over the first interim period.

Alvarez & Marsal North America LLC billed over $28 million.

“Careful stewardship of administrative expenses will translate to a better outcome for creditors, and a Chapter 11 process that is both cost-conscious and cost-effective will yield a better outcome for all stakeholders,” Stadler said.

FTX’s next hearing date is June 28.

The case is In re FTX Trading Ltd., Bankr. D. Del., No. 22-11068, report 6/20/23.