Emma Nelson 
The FTX bankruptcy case has reportedly accumulated nearly $1 billion in legal fees, making it one of the most expensive bankruptcy cases in U.S. history. This revelation comes as the embattled cryptocurrency exchange begins repaying its customers.
FTX Bankruptcy Case Among Most Expensive in U.S. History
According to a Bloomberg report, the FTX bankruptcy proceedings have cost approximately $948 million in legal fees as of January 2, making it one of the most expensive bankruptcy cases in American history. Court documents reveal that over $952 million in fees have been approved so far.
This massive expense coincides with FTX’s first round of customer repayments, which began on February 18. Despite the staggering cost, legal experts believe the fees were justified, given the complexity of tracing billions of dollars in digital assets and cash scattered across numerous accounts linked to the now-defunct exchange.
Detailed Breakdown of FTX Bankruptcy Fees
The Bloomberg report provides a comprehensive breakdown of the fees associated with the FTX bankruptcy case:
- Sullivan & Cromwell LLP, the lead law firm for FTX, has received over $248.6 million in legal fees.
- Alvarez and Marsal, the exchange’s financial adviser, collected around $306 million.
- Advisers representing FTX’s customers charged approximately $110.3 million in fees.
- John Ray, who took over as acting CEO following the collapse, received a significant sum, with his consulting firm charging over $8 million in fees.
The bankruptcy case remains ongoing as lawyers continue to untangle complex financial networks linked to FTX’s various entities. They are actively working to recover more assets for customers and creditors. Additionally, multiple lawsuits related to the bankruptcy are still in progress, including a significant case involving Binance, one of the world’s leading cryptocurrency exchanges.
Comparing FTX’s Bankruptcy Costs with Other Major Cases
While the FTX case ranks among the most expensive bankruptcy proceedings in history, it is still less costly than other notable cases:
- The Lehman Brothers bankruptcy remains the most expensive in U.S. history, costing nearly $6 billion in legal fees.
- The Puerto Rico public debt restructuring also surpassed FTX, amounting to over $2 billion in fees.
Despite these comparisons, the FTX case is still one of the most complex and costly cases in the crypto industry, highlighting the challenges of navigating digital asset bankruptcy proceedings.
Upcoming FTX Repayments and Legal Proceedings
According to a recent CoinGape report, the next round of FTX customer repayments is scheduled to take place between April and May, with creditors receiving their funds through Kraken and BitGo. As the legal battle continues, more details are expected to emerge about the recovery of digital assets and the ongoing litigation surrounding FTX’s collapse.
With the bankruptcy case still unfolding, investors and creditors remain focused on the outcome, hoping for a substantial recovery of lost funds.
