• Between August and October this year, the collapsed FTX exchange forked out $118 million in advisory and legal fees, equating to a staggering $1.3 million daily and $53,000 an hour.
• The biggest beneficiary was Alvarez and Marsal, a New York professional services firm which handled Lehman Brothers, which racked up close to $36 million.

It may have filed for bankruptcy protection, but FTX exchange is still forking millions of dollars weekly as it proceeds through the bankruptcy proceedings. According to recently released court documents, the exchange is running through $53,000 an hour, and while the creditors may not be close to receiving a refund, the professional services firms are making a killing.

FTX blew up on November 11 when founder and CEO Sam Bankman-Fried stepped down and filed for Chapter 11 bankruptcy protection in the US. Since then, liquidators led by John J. Ray III, who famously handled Texas energy giant Enron after its collapse, have been working towards recovering and returning the investors’ assets—at least in theory. In reality, these professionals have been charging an arm and a leg and will be the ultimate winners in the end.

According to court filings, between August 1 and October 31, three months, the bankrupt exchange forked out $118.1 million in fees for legal and advisory services.

Diving into the data provides a clearer picture of the big beneficiaries, none more so than Alvarex and Marsal. Based in New York City and specializing in turnaround management, the firm will receive $35.89 million from FTX for “professional services rendered and reimbursement of expenses incurred.” It will also receive close to a million dollars for interim expenses.

Since it started offering its service on January 19 this year, the firm has received a hefty $109 million from the exchange. On its court filings, it claims that 193 of its professionals have been involved in the bankruptcy case for FTX.

FTX Pays $53,000 an Hour for Legal Services

Sullivan & Cromwell, a New York law firm well known in the crypto sector, will be the second-biggest beneficiary. Its filings show that the firm will receive a $31.75 million paycheck from FTX and $64,000 in interim expenses. To date, it has racked up $119 million from the exchange. The law firm claims that 249 professionals have been involved in the bankruptcy proceedings.

Another firm making a killing is AlixPartners, a financial advisory and consulting firm based in Michigan. Its court filings show that it expects $13 million for the three months. Cumulatively, it has received a much smaller sum than the first two at $7 million. A bevvy of other smaller firms each gets a small share of the rest. According to one source, the total fees already paid amount to $350 million.

By paying $118.1 million in three months, FTX will cough up $1.3 million daily, or $53,000 an hour.

For context, the bankruptcy fees that the exchange incurs might be higher than the customer shortfall by the end of this process. Data shared on X by the renowned Bitcoin developer Jameson Lopp shows that the fees will amount to $1.45 billion while the customer shortfall will stand at $1.422 billion.