The FTX bankruptcy saga has been ongoing for several months now, with legal fees piling up each month. According to recent court filings, the total bill for legal work and expenses in January alone reached a staggering $38 million. The case has involved several firms, each of which has played a role in the bankruptcy proceedings.

The Biggest Beneficiary – Sullivan & Cromwell

Among the firms involved in the case, Sullivan & Cromwell emerged as the biggest beneficiary. As the counsel responsible for discovery, asset disposition, and asset analysis/recovery, the firm submitted an invoice for $16.8 million to cover the 14,569 hours of legal work performed in January. This was a significant improvement for Sullivan & Cromwell, as they had faced the risk of being removed from the case in December.

Other Firms and Costs Involved

Other legal firms were also involved in the case, albeit with smaller bills. Quinn Emmanuel Urquhart & Sullivan billed $1.4 million as the Special Counsel responsible for asset analysis and recovery, alongside avoidance actions. Meanwhile, Landis Rath & Cobb charged only $663,995 for handling hearings, litigation, and asset disposition.

On the financial side, industry services firm Alvarez & Marsal submitted the largest charge, billing $12.3 million for a combined 5,644 hours working on avoidance action, financial analysis, and accounting. This was followed by AlixPartners, which billed $2.1 million for 2,454 hours of work on conducting forensic analysis on DeFi products and tokens. Investment bank Perella Weinberg Partners continued to charge their monthly fee of $450,000, responsible for devising a restructuring strategy. So far, the firm has focused on the sale of LedgerX and FTX to create liquidity for creditors.

The Impact on Creditors

As the costs continue to stack up, creditors remain at a loss. In bankruptcy proceedings, it is all too common for representatives to be the real winners, at least for the time being. The high legal fees involved in the FTX bankruptcy case have raised concerns about the distribution of assets and the impact on creditors.

Conclusion

In conclusion, the FTX bankruptcy saga has resulted in a significant amount of legal fees, with January alone seeing a bill of $38 million. The case has involved several firms, with Sullivan & Cromwell emerging as the biggest beneficiary. While creditors are left at a loss, the representatives involved in the case continue to rack up costs, raising concerns about the distribution of assets.