According to a brand-new report, the questionable law office Sullivan & Cromwell is on track to enjoy a fortune from its work on the FTX cryptocurrency exchange’s insolvency case.Sullivan & Cromwell

‘s costs in the FTX case are estimated to reach numerous countless dollars before the firm’s personal bankruptcy investigation is over, Bloomberg Law reported on Jan. 27. As the FTX trial is set up for October 2023, the firm’s legal representatives now have about 8 months to untangle the complex FTX case, which will cost a great deal of money and time. Sullivan & Cromwell has more than 150 people dealing with the FTX case, consisting of 30 partners with rates surpassing 2,000 per hour. The report keeps in mind that associates are charging up to about$1,500 per hour, citing a court filing. Source: Bloomberg Law In a court statement, Sullivan & Cromwell stated that its proposed charges are in accordance with market rates by other leading law office and really represent a discount from the

rates used in non-bankruptcy matters.Bankruptcy experts have been facing a high demand as the crypto winter of 2022 generated many insolvency filings, including those by major crypto firms like Genesis Global Trading, Celsius Network and Voyager Digital.According to Jonathan Lipson,

a Temple University law teacher, legal representatives are going to do effectively in cases like FTX,”simply as the experts have done effectively in other big cases.” For instance, New York-based law firm Weil Gotshal made about$500 million in fees from the personal bankruptcy of Lehman Brothers in 2008. Lipson stated that such big costs can be warranted as Sullivan & Cromwell can potentially assist investigators recover money from FTX, specifying:”The important concern is never ever are

the attorneys charging a lot. It’s, is it worth it? If they can recuperate a lot of cash, then it’s most likely worth it. “The news comes quickly after FTX personal bankruptcy judge John T. Dorsey on Jan. 19 authorized Sullivan & Cromwell’s retention as FTX’s legal group in spite of debate about the firm allegedly having prospective conflicts of interest in the case.Good news for Sullivan & Cromwell. The FTX Bankruptcy Judge simply approved their retention amidst scathing allegations by a former FTX Chief Regulatory Officer. No continuance to examine but the Judge’s decision made sense and S&C’s arguments were compelling/very well-presented. pic.twitter.com/ZSVZdGyvkw!.?.!— John Reed Stark(@JohnReedStark)January 20, 2023 The decision came in spite of concerns connected to Sullivan & Cromwell having actually encouraged FTX considering that before it filed for Chapter 11 defense in November 2022. On Jan. 9, United

States senators John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis gotten in touch with the judge to approve a movement to select an independent inspector into FTX’s activities. Related: SBF says Sullivan & Cromwell opposed itself with insolvency claims Sullivan & Cromwell subsequently stressed that the law office has “never ever functioned as main outdoors counsel to any FTX entity “and had a “restricted and largely transactional relationship with FTX and certain affiliates prior to the insolvency.” The firm did not immediately react to follow up concerns from Pandoraland.