Between February 1 and April 30, the collapsed FTX exchange spent $121.8 million on consulting and financial services. It is reported by The Block.
FTX lawyers from Sullivan & Cromwell issued the largest payout, $37.6 million. The smallest payout, $730,000, went to venture capital firm Jefferies.
Restructuring consultants at Alvarez and Marsel demanded $37 million, including $51,225 food, $149,155 accommodation, and $1,995 miscellaneous expenses.
“As restructuring advisors, their claims and compensations are prioritized and are ‘super-priority’ over unsecured claims, which include client deposits,” analysts at The Block said in a statement.
According to the documents, FTI Consulting spent about 686 hours and billed $761,997 for a workflow called “restarting the exchange.”
In January, FTX CEO John Ray first revealed that a special task force was looking into reopening the company.
In April, lawyers from Sullivan & Cromwell allowed the reorganization of the exchange with the resumption of work instead of liquidation or sale. The schedule they presented assumed that the detailed plan would be submitted in the third quarter.
At the same time, the idea of reviving FTX was expressed by the former head of institutional sales Zane Tackett. In his opinion, the platform should resume offering all pre-crash products by adding a tokenized claims market.
As a reminder, on November 11, 2022, the FTX Group filed for insolvency under Chapter 11 of the US Bankruptcy Code.
Former platform CEO Sam Bankman-Fried has been charged with 13 criminal offenses by U.S. prosecutors, including giving a $40 million bribe to at least one Chinese official. He pleaded not guilty to any of the counts.
In May, it became known that Bankman-Fried’s lawyers were seeking the court to drop many of the charges before the main trial began. They are asking for almost every count except conspiracy to commit securities, commodities and money laundering fraud.
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