FTX spends $120M on advisory and legal services

The bankrupt cryptocurrency exchange FTX continues to work to clean up the consequences of the actions of its management and spend huge sums on it. Between February 1 and April 30, 2023, the exchange spent more than $120 million on consulting and financial services. This publication reports The Block.

The lawyers from Sullivan & Cromwell received the most. They billed the bankrupt exchange for $37.6 million over the period, representing 30.9% of total advisory spending.

Investment banking firm Jefferies received the least, costing just $730,000, or 0.6% of FTX’s total spending over the period.

Restructuring consultants from Alvarez and Marsel distinguished themselves by their appetites. Their work cost FTX $37 million, including $51,225 for food, $149,155 for accommodation, and $1,995 for other expenses.

Interestingly, FTI Consulting spent about 686 working hours on FTX cases. The work cost the company $761,997. And they were engaged in “restarting the exchange”.

In April 2023, it was revealed that FTX was considering restarting the company in the second quarter of 2024. New FTX CEO John Ray mentioned this scenario in a January interview. He said that a specially created working group is studying the question of whether the revival of the exchange can bring more benefits to users compared to the liquidation of FTX assets.

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