FTX’s bankruptcy nears $1B in costs, ranking among the most expensive in history

FTX’s bankruptcy costs are approaching a billion dollars, making it one of the most expensive cases in chapter 11 in the history of the United States.

Judicial files show that nearly $ 948 million have been paid to legal and financial companies working on the case, with more than $ 952 million in expenses so far. Despite high costs, most customers should recover 118% of their complaints, a rare result in bankruptcy procedureaccording to Bloomberg.

The high costs result from efforts to recover billions of dollars in assets spread over a complex network of accounts. Lawyers and financial advisers played a crucial role in this process, with Hedge funds that bought FTX complaints at high discounts between the beneficiaries.

Ftx started the initial distributions To creditors last week, although the legal teams continue to follow the additional assets.

Sullivan and Cromwell

FTX’s main law firm Sullivan & Cromwell was paid more than $ 248 million, while financial advisor Alvarez & Marsal received around $ 306 million, according to Bloomberg. The company supervising customer complaints and other creditor issues billed around $ 110 million.

Sullivan and Cromwell played a key role in guidance The US Treasury and major financial institutions during the 2008 financial crisis. The company helped acquire by JPMorgan Chase de Bear Stearns and the bailout of the AIG government.

In addition, the firm provided legal and financial advice following the bankruptcy of Enron, one of the most important cases of business fraud in history.

The costs of the case of the FTX have far exceeded those of other cryptographic bankruptcies, in particular CelsiusGenesis, Blockfi and Digital Voyager, which together has hired around $ 502 million in expense.

Bankruptcy is always faced with current disputes, including a prosecution against Binance Search for $ 1.8 billion.

Although the costs of the FTX are significant, they remain well below those of the bankruptcy of $ 6 billion from Lehman Brothers – the most expensive in American history, according to Bloomberg.