FTX Incurs Daily Bankruptcy Costs Exceeding $1.3 Million Amidst Legal Proceedings

FTX is contending with a staggering daily bankruptcy bill exceeding a million dollars, as per a recent Business Insider report. In the aftermath of its collapse in late 2022, the exchange found itself burdened with at least $118.1 million in bankruptcy fees for lawyers and advisers in the three months ending October 31. This translates to a daily expenditure of $1.3 million or an hourly cost of $53,000 over a 92-day period.

Among the substantial expenses incurred, the consulting firm Alvarez & Marsal claimed the lion's share, billing nearly $36 million for the services of 193 professionals dedicated to the case. Following closely, the law firm Sullivan & Cromwell presented a bill of $31.8 million for the efforts of 249 professionals during the billing period.

Additional fees were charged by AlixPartners and Quinn Emanuel Urquhart & Sullivan, the advisory entities guiding FTX through its bankruptcy proceedings. AlixPartners charged $13.3 million, while Quinn Emanuel Urquhart & Sullivan billed $10.5 million over the three-month span.

The recent filings underscore the substantial financial toll incurred by FTX since its collapse last year. The exchange, in navigating its Chapter 11 bankruptcy and restructuring, enlisted a considerable cadre of professionals. FTX's downfall in late 2022 triggered an $8 billion cryptocurrency surge and culminated in the incarceration of former CEO Sam Bankman-Fried.

A recent jury verdict found Bankman-Fried guilty on seven counts of fraud and conspiracy related to his dealings with the cryptocurrency exchange. He now faces a potential prison sentence of up to 110 years, with the sentencing scheduled for March of next year.

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Business Insider