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FTX spent $120 million on consultants in three months

  • Top of the list are lawyers from Sullivan & Cromwell and restructuring specialists from Alvarez and Marsel
  • This only confirms management plans to restart the platform
  • But while consultants and top management get increased salaries, rank-and-file employees get cut

While new FTX management continues to complain about lack of funds, some employees and hired consultants may “get rich” on bankruptcy. For example, between February and April, the exchange spent $120 million just on advisors.. In April, it became known that advisers FTX in February earned more than $ 32 million. But now it turns out that they are practically “sitting on their paychecks.”

They received roughly the same amount in March and April. And in just three months, the stock exchange spent $121.8 million on the item, according to analysts with The Block Research.

For the most part, it was the services of lawyers and financial advisers.. The clear leader among contractors is the “sharks” at Sullivan &Cromwell.

In three months they made $37.6 million on the FTX bankruptcy, nearly 31% of all costs. In second place is Alvarez and Marsel. She provides advice on the possible restructuring of the company. The firm has received $37 million in three months.

Analyst Greg Lim noted that it is Alvarez and Marsel’s requests that are being prioritized and repaid first. This confirms the fact that the new management is planning to restart the platform.. The new FTX CEO receives about $345,000 per month, not including bonuses. While rank-and-file employees are being laid off, the “most important people” are getting bonuses. In March, for example, the firm allocated $4 million for this purpose.