FTX lawyers and advisors have seen over $500 million in fees approved from the estate as the bankruptcy costs keep rising.

In all, those overseeing the bankruptcy process have asked for more than $700 million in fees and expenses, although many of the requests have been cut back by 20%, and some have not yet been approved.

The FTX estate’s special counsel, Sullivan and Cromwell, tops the list, with $254 million of approved fees (although it billed for $360 million), according to court filings. Financial advisor Alvarez and Marsel comes in behind with $133 million in approved fees.

Other law firms and advisors include forensic investigative consultants AlixPartners, special counsel Quinn Emanuel Urquhart & Sullivan, investment banker Perella Weinberg Partners and co-counsel Landis Rath & Cobb. Collectively, they have charged $57 million in fees.

Since the process began, FTX CEO John Ray III has charged $5.6 million, with his hourly rate of $1,300. RLKS Executive Solutions, the estate's chief officers, has billed $26 million in total.

Separately from the debtor professionals, the Official Committee of Unsecured Creditors has also racked up its own tab. Its counsel and financial advisors have requested $81 million in fees with an additional $1.5 million in expenses. The Ad Hoc Committee has requested less than $5 million in fees.

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FTX's path to recovery

FTX failed due to illegitimate behind-the-door operations by its executives, which led to a liquidity crisis and its collapse in November 2022. Former FTX CEO Sam Bankman-Fried was found guilty in November 2023 on all seven criminal counts of defrauding FTX customers and investors. Bankman-Fried received a prison sentence of nearly 25 years in March and his lieutenant Ryan Salame received a 7.5 year prison sentence in May.

Earlier this month, the estate said that it plans to give 98% of its creditors at least 118% of allowed claims, measured in dollar value at the time the exchange filed for bankruptcy. Other creditors will receive full repayment and billions more in compensation for the time value of their investments, the company said.

Sullivan and Cromwell is also facing a class action lawsuit that alleges it was so closely involved with the exchange prior to its collapse that it should be held partially responsible for its actions. The law firm has denied all accusations.