The collapse of FTX, once a leading cryptocurrency exchange, has led to a bankruptcy process that has seen lawyers and advisors rake in a staggering $500 million in fees, with total costs expected to exceed $700 million. The FTX estate's special counsel, Sullivan and Cromwell, has been the biggest beneficiary, with approved fees of $254 million, despite billing for a whopping $360 million. Financial advisor Alvarez and Marsel follows closely, with approved fees of $133 million.

Other law firms and advisors, including AlixPartners, Quinn Emanuel Urquhart & Sullivan, Perella Weinberg Partners, and Landis Rath & Cobb, have collectively charged $57 million in fees. FTX CEO John Ray III has also charged a significant $5.6 million, with an hourly rate of $1,300, while RLKS Executive Solutions, the estate's chief officers, has billed a total of $26 million.

Separately, the Official Committee of Unsecured Creditors has accumulated its own substantial tab, with its counsel and financial advisors requesting $81 million in fees, plus an additional $1.5 million in expenses. The Ad Hoc Committee has requested less than $5 million in fees.

The FTX bankruptcy process has been marked by controversy, with the exchange's collapse in November 2022 attributed to illegitimate operations by its executives, leading to a liquidity crisis. Former CEO Sam Bankman-Fried was found guilty of defrauding FTX customers and investors and received a prison sentence of nearly 25 years in March. His lieutenant, Ryan Salame, received a 7.5-year prison sentence in May.

Despite the controversy, the FTX estate has announced plans to repay 98% of its creditors at least 118% of allowed claims, measured in dollar value at the time of bankruptcy. Other creditors will receive full repayment and billions more in compensation for the time value of their investments.

However, Sullivan and Cromwell is facing a class-action lawsuit alleging that it was too closely involved with FTX prior to its collapse and should be held partially responsible for its actions. The law firm has denied all accusations.

The FTX bankruptcy process has raised questions about the role of lawyers and advisors in such cases and the significant costs involved. As the process continues, it remains to be seen how these costs will impact the repayment of creditors and the future of the cryptocurrency exchange.