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

The crypto community has definitely seen some failure stories. Stories about bankruptcy and legal ruin are common in the crypto landscape. The latest addition to the list is the FTX bankruptcy case. The latest court records in the FTX case proceedings show that the firm has nearly paid $948 million out of the $952 million in legal fees. Bloomberg reports that despite the hefty cost, most customers will receive at least 118% of their claims. This is a rare case of phenomena in a bankruptcy proceeding.  

The high fees are due to the massive legal effort that the company had to bear to collect funds spread across the globe. In other words, the legal aid is what pushed this case forward. As a result, FTX had to pay such high legal aid. Sources suggest that the company used up all of its hedge funds. At press time, the company started playing the creditors while the legal team pinpointed other assets.  

Scale Of The Case 

As of now, the FTX case’s cost has exceeded some of the other similar cases like the Celsius, Genesis, Voyager, and BlockFi bankruptcy cases. All of these cases have incurred a total cost of about $502 million. This shows the magnitude of the FTX case. 

While The FTX case is one of the biggest crypto bankruptcy cases, it is still well below the Lehman Brothers’ bankruptcy case, which amounted to $6 billion. In fact, Bloomberg suggests that the Lehman Brothers case is the biggest bankruptcy case in the history of the US.