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Massive Legal Fees and Hours Logged
Sullivan & Cromwell has requested approximately $200 million in fees as debtor’s counsel in the bankruptcy case of cryptocurrency exchange FTX. This sum is based on more than 168,000 hours worked by the firm’s lawyers and staff.
Notable Workload by Partner Brian D. Glueckstein
Among the legal team, partner Brian D. Glueckstein’s efforts are particularly noteworthy. He has averaged nearly 11 hours of work per weekday over 18 months dedicated to the FTX case. Additionally, since May 2023, Glueckstein has clocked at least 732 hours on the bankruptcy proceedings of fire-protection company Kidde-Fenwal Inc. This results in an average workload of about 12 hours per day, five days a week, for 11 months.
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High Billing Rates and Fee Approval
Glueckstein’s billing rate stands at $2,375 per hour. To date, a bankruptcy judge has approved all but $26.8 million of the nearly $200 million in fees requested by Sullivan & Cromwell. The remaining amount is still under review. According to a spokesperson for Sullivan & Cromwell, there have been no objections to the fee requests.
FTX’s Recovery Efforts and Founder’s Conviction
FTX has managed to recover over $16 billion since filing for bankruptcy and plans to fully repay its customers. The company’s founder, Samuel Bankman-Fried, was convicted of fraud and conspiracy in November 2023, following allegations that he misrepresented FTX Trading as a secure platform for crypto trading while funneling investor funds to his private hedge fund.
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Expert Insights on Legal Workloads
Experts in the field note that the intense workloads reported in high-stakes bankruptcies are not unusual. Adam Levitin, a professor at Georgetown University Law Center, highlighted this phenomenon, likening it to a pie-eating contest where the reward for winning is more pie. This analogy underscores the demanding nature of legal work in such high-profile cases.
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