FTX lawyers S&C file $7.5M invoice for November services News ▸ US ▸ FTX ▸ Bankruptcy
FTX lawyers S&C file $7.5M invoice for November services
Over 150 Sullivan & Cromwell (S&C) employees spent 6,561 hours working on the FTX bankruptcy case.
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Updated: Feb. 8, 2023 at 2:51 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX lawyers Sullivan & Cromwell (S&C) charged the bankrupt exchange $7.5 million for its work between Nov. 12 till Nov. 30, 2022, according to a Feb. 7 court filing.
The law firm said the charges represent 80% of an actual “reasonable and necessary” compensation of $9.5 million. It added that it incurred additional expenses of $105,053 for its work during the period.
According to the filing, over 150 employees spent 6,561 hours working on the FTX bankruptcy case. The least FTX was billed was $550 per hour for an S&C employee, while partners charged rates as high as $2,165 per hour.
S&C noted that the charges for more senior staff were at a discount compared to fees under its standard billing procedures. It added that:
“The services performed by S&C during the Fee Period represent one of the most complicated, multi-disciplinary exercises by any law firm.”
FTX founder Sam Bankman-Fried previously accused the firm of pressuring him to file for bankruptcy because of the fees it stood to earn. Four U.S. lawmakers also objected to its appointment, citing a conflict of interest over its previous relationship with the bankrupt firm.
However, FTX’s CEO, John Ray, defended the law firm, saying its services were essential to safeguard the best interest of FTX and its stakeholders.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sullivan & Cromwell LLP
Sullivan & Cromwell LLP is an American multinational law firm headquartered in New York City that provides a high quality legal advice and representation to clients around the world.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
John J Ray III is the Chief Restructuring Officer and now-appointed CEO of FTX, a cryptocurrency derivatives exchange.