FTX CEO billed $305,000 for February, bankruptcy lawyers cash in too
New FTX CEO John Ray III had a profitable February, with a payday of $305,000 according to new documents released to the public.
Attachment 1 of document 811 filed by Kroll — the firm overseeing the FTX bankruptcy — shows that the firm’s new CEO John Ray III has a hourly billing rate of $1,300 and cost the creditors $305,565 in February.
This follows other documents released by Kroll showing that the professionals working on the FTX bankruptcy case billed a total of $38 million plus expenses for the month of January. The administrators decided to keep Sullivan & Cromwell as counsel while Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb serve as special counsel.
Furthermore, consultancy AlixPartners primarily offers forensic analysis on decentralized finance (DeFi) products and tokens that FTX interacted with. Sullivan & Cromwell billed $16.8 million for January while Quinn Emanuel Urquhart & Sullivan billed $1.4 million, and Landis Rath & Cobb billed $663,995.
An interesting observation might be that despite the astonishing paygrades, the administration’s performance in managing FTX’s assets has been less than stellar.
According to a mid-January report, liquidators have incurred in over $4 million of preventable losses due to their — presumably caused by lack of understanding of DeFi protocols and products.