The Price Of Failure: FTX’s Legal Expenses Reach $32.5 Million In A Month
The post The Price Of Failure: FTX’s Legal Expenses Reach $32.5 Million In A Month appeared first on Coinpedia Fintech News
Bankrupt crypto exchange FTX has racked up a jaw-dropping $32.5 million in legal expenses for just one month alone, and that’s not even including the CEO’s compensation of over $300,000! It’s clear that the cost of a crypto bankruptcy can be staggering, and this is a stark reminder of the importance of risk management in the crypto world.
Keep reading to learn more about FTX’s downfall and the lessons that we can all take away from it.
John J Ray III – Hourly Billing Rate & Total Fees
Law Firms Cash In on FTX Bankruptcy
While FTX’s customers wait for their recompense, law firms involved in the bankruptcy proceedings are raking in the dough. Invoices from firms like Sullivan and Cromwell, Quinn Emanuel Urquhart and Sullivan, Alvarez and Marsal, and Alix Partners totaled in the millions. And brace yourselves – partners at these firms are charged between $1,246 and $1,917 per hour, while associates are charged between $747 and $1,183 per hour.
It’s enough to make your head spin. Have a look.
Law FirmFeesQuinn Emanuel Urquhart$2.7 millionSullivan and Cromwell$13.4 millionAlvarez and Marsal$11.9 millionAlix Partners$3.6 millionPerella Weinberg Partners$77,891Landis Rath and Cobb$582,604
Fee applications from law firms representing the Official Creditors Committee of FTX are in.
For the month of January, the 2 firms billed $4.4 million.
That’s in addition to the approximately $38 million billed for January by the lawyers and consultants working for the FTX… https://t.co/PPzWSxqZrN
— MetaLawMan (@MetaLawMan) March 17, 2023
A Cautionary Tale for Crypto Investors
It’s a tough pill to swallow for FTX’s customers who are still waiting for recompense while the law firms and CEO cash in. This just goes to show that the world of crypto can be complicated and expensive, and investors should proceed with caution. While the potential for high returns in crypto can be tempting, it’s important to do your due diligence and be aware of the risks involved.
So, let this be a cautionary tale for anyone considering jumping into the world of crypto. As they say, buyer beware!
Filed under: Bitcoin - @ April 11, 2023 9:27 am