CEFIREGULATION

FTX reorganization team has spent $120 million from November to now, with John Ray receiving a million-dollar salary.

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FTX reorganization team has spent $120 million from November to now, with John Ray receiving a million-dollar salary.

The bankruptcy restructuring team led by John Ray has spent over $100 million since taking over FTX on November 11th. John Ray's personal accumulated salary has also exceeded one million dollars. Creditors' assets burn an average of $30 million per month. Until SBF's criminal trial in October, the expenditure for the FTX bankruptcy restructuring team is expected to reach at least $360 million.

Looking at this event more pessimistically, the Mt. Gox lawsuit has been going on for nearly a decade, and the FTX case is unlikely to end in October of this year. Therefore, the total expenditure may far exceed the rough estimate of $360 million. During the Mt. Gox era, there was only Bitcoin (BTC), which has increased in value several times after a decade. However, the crypto assets left by FTX include a large number of altcoins, which seemingly cannot withstand the test of time.

Review of the Mt. Gox incident: Bankruptcy continues after nine years! Two major creditors of Mt. Gox received compensation at the end of September, accounting for about 21% of the funds lost.

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FTX Bankruptcy Reorganization Team Receives $30 Million in February

According to the compensation report filed on April 10, the FTX bankruptcy reorganization team received approximately $29.7 million in fees during February. CEO John Ray worked approximately 240 hours, earning a salary of $308,000, with an additional write-off cost of $407,000.

Related institutions include:

  • Sullivan & Cromwell consultants: $13.45 million, charging $2,165 per hour.

  • Alvarez & Marsal lawsuit withdrawal, financial analysis: $12 million.

  • AlixPartners DeFi verification: $3 million.

  • Landis Rath & Cobb special consultants: $583,000.

  • Perella Weinberg Partners consultation and communication: $450,000 monthly fee.

FTX Bankruptcy Reorganization Team Receives $40 Million in January

As reported earlier, the reorganization team charged $40 million in January, with CEO John Ray earning a similar $300,000 in monthly salary.

Related institutions and costs are as follows:

  • Sullivan & Cromwell consultants: $16.8 million

  • Alvarez & Marsal lawsuit withdrawal, financial analysis: $12.3 million

  • AlixPartners DeFi verification: $2.1 million

  • Quinn Emmanuel Urquhart & Sullivan special consultants: $1.4 million

  • Landis Rath & Cobb special consultants: $663,000

  • Perella Weinberg Partners consultation and communication: $450,000

FTX Bankruptcy Reorganization Team Receives $52 Million in November-December

Based on the write-off applications corresponding to the following firms, the reorganization spent over $51.92 million last year, even though John Ray took over FTX on November 11 and the average salary for November and December was nearly $350,000.

Looking at the write-offs for each month, Sullivan & Cromwell S&C spent the most aggressively. There have been controversies before due to their connection with FTX and the inability to avoid conflicts of interest, prompting John Ray to come forward with an endorsement:

John Ray Endorsement: Opposes changing law firm Sullivan & Cromwell, they are not bad eggs