FTX Grapples with Hefty Legal Expenses
Cryptocurrency exchange FTX is facing a significant financial burden, shelling out approximately $53,000 per hour on legal counsel for its ongoing bankruptcy proceedings. From August to October 2023, the exchange’s new leadership has already expended over $118 million in legal fees.
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Cryptocurrency exchange FTX is facing a significant financial burden,
shelling out approximately $53,000 per hour on legal counsel for its
ongoing bankruptcy proceedings. From August to October 2023, the
exchange's new leadership has already expended over $118 million in
legal fees.
Leading law firms like Alvarez & Marsal, Sullivan & Cromwell,
and AlixPartners have billed the exchange $81 million collectively. The
cumulative expenses since the declaration of bankruptcy are estimated to
be approaching $350 million.
Katherine
Stadler, a court-appointed fee examiner, has raised concerns about
excessive staffing, numerous after-hours meetings, and resultant
financial strain. She also highlighted discrepancies in some timekeeping
records.
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