FTX paid over $120 million in advisor fees between February 1 and April 30

Quick Take

  • FTX’s bankruptcy estate paid $121.8 million in legal, consulting and financial services fees and expenses between February 1 and April 30, according to data compiled by The Block Research’s Greg Lim. 
  • FTX advisors submitted their expenses and fees on June 15. 

The legal and advisory costs for bankrupt crypto exchange FTX are mounting.

Filings submitted on June 15 by FTX's advisors show that fees and expenses for the period between February 1 and April 30 totaled $121.8 million, according to data compiled by The Block Research

FTX lawyers at Sullivan & Cromwell billed the bankrupt exchange $37.6 million for the period, amounting to 30.9% of all fees and expenses. Investment banking firm Jefferies billed the lowest amount, making up 0.6% of the total fees and expenses. 

Restructuring consultants at Alvarez and Marsel charged $37 million with over $1.1 million in expenses that included $51,225 in meals, $149,155 in lodging and other miscellaneous items amounting to $1,995. 

"As restructuring advisors, their claims and compensation sit on top of other claims and are 'super senior' to the unsecured claims bucket which includes customer deposits," The Block Research's Greg Lim. 

Exchange restart 

The mounting costs of FTX's bankruptcy are fueling a movement among some former clients to reboot the exchange under new leadership to return value to customers. 

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Travis Kling, the chief investment officer at Ikigai Asset Management, once referred to a reboot as “one of the most bullish outcomes possible for creditors.” Ikigai held a majority of its assets on FTX.

Loomdart, an anonymous crypto personality, is leading the charge on a movement dubbed the FTX 2.0 coalition. In his view, the regulatory woes facing Coinbase and Binance make a relaunch more viable. 

Per filings, FTI Consulting spent about 686.8 hours and billed fees of $761,997.70 on a workstream titled "Exchange restart."

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].


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