The FTX bankruptcy case has reportedly cost up to $1 billion in fees so far, making the case one of the most expensive bankruptcy cases in America. This comes amid the exchange’s recent move to start repaying customers.
FTX Bankruptcy Case Costs $1 Billion In Fees
According to a Bloomberg report, the FTX bankruptcy case has cost almost $1 billion in fees, making it one of the costliest bankruptcy cases in America’s history. So far, lawyers have collected around $948 million to work on the Chapter 11 case through January 2. Meanwhile, court records show that the court has approved over $952 million in fees.
This revelation comes following the FTX repayments, which kicked off on February 18. Despite the hefty fees paid for the bankruptcy case, legal experts suggested to Bloomberg that it was worth it, seeing as these lawyers were able to track billions of dollars in digital assets and cash, which the defunct exchange had scattered across several networks of accounts.
A Breakdown Of The Fees In The Case
The Bloomberg report further gave a breakdown of the fees in the FTX bankruptcy case. The exchange’s lead law firm, Sullivan & Cromwell LLP, has received over $248.6 million in legal fees. FTX’s financial adviser Alvarez and Marsal has also received around $306 million, according to the court records.
Meanwhile, advisers representing the defunct exchange’s customers have charged around $110.3 million in fees. John Ray, who took over as the acting CEO in the aftermath of FTX’s collapse, also received a significant sum as his consulting firm charged over $8 million in fees.
The bankruptcy case is still ongoing, as lawyers are still through several of FTX’s entities and accounts in a bid to recover more assets for the exchange’s customers and creditors. There are also a number of ongoing lawsuits related to the bankruptcy case, including one involving the top crypto exchange Binance.
Although FTX’s case is one of the most expensive bankruptcy cases in history, the Lehman Brothers case remains the costliest in America’s history as it cost almost $6 billion in legal fees. The FTX case is also still less expensive than the cost of restricting Puerto Rico’s public debt, which according to Bloomberg, cost over $2 billion.
Meanwhile, as CoinGape reported, the next FTX repayment would happen between April and May. Creditors will receive their repayments through the Kraken and BitGo.
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