Lawyers billed $7.7 million for first 19 days of work on FTX case

Lawyers billed $7.7 million for first 19 days of work on FTX case

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Author: Robert Strickland
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Lawyers billed $7.7 million for first 19 days of work on FTX case
To work with the law firm Sullivan & Cromwell previously insisted on the new head of the exchange John Ray III. He himself earned $690,000 in his first two months at FTX.

The law firm of Sullivan & Cromwell (S&C) billed more than $7.7 million for the first 19 days of work on the FTX bankruptcy case. One of the documents the lawyers submitted to the court on Feb. 7 is an application for fees for their services from Nov. 12 to Nov. 30 of last year.

During that time, a total of 32 partners, 85 lawyers and 34 other S&C employees worked more than 6,500 hours. They reviewed documents, attended court hearings, communicated with foreign counterparts and restored corporate governance arrangements for a group of more than 100 companies that filed for bankruptcy at the same time as the FTX on Nov. 11.

According to the document, the company's services are valued at $9.5 million, but only 80% of the total amount, about $7.6 million, is presented for payment. The lawyers also insist on covering $105,000 in incurred expenses.

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Earlier in the selection of the law firm, FTX founder Sam Bankman-Fried, a group of senators and a trustee on behalf of the U.S. (a Justice Department official overseeing the bankruptcy process) voiced concerns about the S&C appointment, CoinDesk reported. They cited the fact that the firm had done $8.5 million worth of work for the company in the 16 months leading up to bankruptcy, and that its former partner Ryan Miller is now general counsel for FTX.

John Ray III, who took over as head of FTX on Nov. 11, said S&C is "one of the leading law firms in the world," and that its involvement in the exchange's bankruptcy proceedings would best serve the interests of FTX and other interested parties.

Meanwhile, John Ray's salary from Nov. 11 through Dec. 31, 2022, was $690,000, he reported in court Monday, Feb. 6, Insider writes. Considering his hourly rate is $1,300, his FTX job took him 75 hours a week.

 

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