{"id":73188,"date":"2023-01-27T17:52:05","date_gmt":"2023-01-27T15:52:05","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73188"},"modified":"2025-09-09T12:44:11","modified_gmt":"2025-09-09T09:44:11","slug":"bloomberg-puts-ftx-lawyers-fees-in-the-hundreds-of-millions","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bloomberg-puts-ftx-lawyers-fees-in-the-hundreds-of-millions\/","title":{"rendered":"Bloomberg puts FTX lawyers\u2019 fees in the hundreds of millions"},"content":{"rendered":"

The fee for Sullivan & Cromwell, acting on behalf of FTX in the exchange’s bankruptcy case, is likely to reach hundreds of millions of dollars before the process concludes. Bloomberg Law<\/a>.<\/p>\n

The estimate is based on hourly rates of its specialists, ranging from $1395 to $2165, according to court documents. <\/p>\n

Sullivan & Cromwell stressed that the proposed fee schedule is market-competitive and essentially represents a discount compared with non-bankruptcy matters.<\/p>\n

The court is scheduled for October 2023. The firm\u2019s lawyers will have eight months to immerse themselves in the case.<\/p>\n

The agency pointed to heightened demand for bankruptcy experts in the wake of collapses of firms such as Genesis Capital<\/a>, Celsius Network<\/a> and Voyager Digital<\/a>.<\/p>\n

According to Temple University Law professor Jonathan Lipson, lawyers in similar FTX cases will ‘prosper’. He recalled Weil Gotshal’s earnings of about $500 million in fees for participating in the Lehman Brothers bankruptcy process in 2008.<\/p>\n

The expert called the sizeable spend on Sullivan & Cromwell ‘justified’, as the firm could potentially help investigators recover money for shareholders of Sam Bankman-Fried’s group of companies.<\/p>\n

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“The important question is not how much lawyers charge, but whether it is justified? If they can recover a lot of money, then it is probably worth it”,<\/em> he explained.<\/p>\n<\/blockquote>\n

On January 19, the court approved keeping Sullivan & Cromwell as FTX’s legal team, despite disputes that the firm allegedly had a potential conflict of interest in the case due to advising FTX before the platform’s bankruptcy proceedings commenced.<\/p>\n

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Good news for Sullivan & Cromwell. The FTX Bankruptcy Judge just approved their retention amid scathing allegations by a former FTX Chief Regulatory Officer. No continuance to investigate but the Judge\u2019s decision made sense and S&C\u2019s arguments were compelling\/very well-presented. pic.twitter.com\/ZSVZdGyvkw<\/a><\/p>\n

\u2014 John Reed Stark (@JohnReedStark) January 20, 2023<\/a><\/p><\/blockquote>\n