FTX's Billion-Dollar Bankruptcy: A Legal Feast

FTX's bankruptcy proceedings have reached a staggering cost of nearly $1 billion, ranking among the most expensive in history. The crypto community has witnessed its fair share of failures, but the FTX case stands out due to its massive legal fees. According to court records, the firm has already paid out $948 million out of the $952 million in legal fees, with most customers expected to receive at least 118% of their claims.

The high costs are attributed to the extensive legal effort required to collect funds spread across the globe. FTX's legal team has been working tirelessly to recover assets, leading to the hefty legal fees. Sources suggest that the company has exhausted its hedge funds, and it has begun negotiating with creditors while the legal team continues to identify other assets.

The scale of the FTX case is unprecedented in the crypto landscape. As of now, the case's cost has surpassed other notable bankruptcy cases, such as Celsius, Genesis, Voyager, and BlockFi, which together incurred a total cost of about $502 million. While the FTX case is one of the largest crypto bankruptcy cases, it is still far below the Lehman Brothers' bankruptcy case, which amounted to $6 billion and is considered the biggest bankruptcy case in US history.