FTX Reportedly Pays $120M in Consulting Fees

Between February 1 and April 30, the collapsed FTX exchange spent a total of $121.8 million on consulting and financial services.

Of this amount, FTX lawyers from Sullivan & Cromwell received the largest payment of $37.6 million, whereas the smallest payout, of $730,000, went to the venture capital firm, Jefferies.

Furthermore, restructuring consultants from Alvarez and Marsal were granted $37 million, including $51,225 for food, $149,155 for accommodation, as well as $1,995 for miscellaneous expenses.

“As restructuring advisors, their claims and compensations are prioritized and are ‘super-priority’ over unsecured claims, which include client deposits,” analysts stated.

Additionally, FTI Consulting was billed $761,997 after spending 686 hours on a project termed “restarting the exchange.”

John Ray, the FTX CEO, disclosed the preliminary plan to revive the platform in January. Then, in April, lawyers from Sullivan & Cromwell enabled a restructuring instead of a shutdown or sale.