FTX Bankruptcy Burning Through $1.5M in Legal Costs Every Day

  • 📰 CoinDesk
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

Law Law Headlines News

Law Law Latest News,Law Law Headlines

Creditors are lamenting the rapid drain of cash from the global exchange’s bankruptcy as the process stretches over more months.

The dismantling of FTX is piling up as much as $1.5 million a day in bills as lawyers and other professionals pick through the ashes of the global exchange.

The increasing cost was a point of contention at a bankruptcy hearing on Wednesday, with the creditors’ committee decrying the current rate of spending. “They've now moved to a pace of almost $50 million a month in fees, with literally hundreds of lawyers, financial advisors and bankers working on them practically full time,” said Kris Hansen, a lawyer from Paul Hastings representing the creditors’ committee. “Every dollar spent in the case is essentially a dollar that creditors don't receive.

of the case – totaling $200 million – noted the fees were “remarkable,” but it also praised the professionals digging through the “smoldering heap of wreckage” to recover creditors’ money. The staggeringly complex bankruptcy is also complicated by the necessary side negotiations with other collapsed crypto giants, such as the recent deal with Genesis that FTX’s Alameda Research

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 291. in LAW

Law Law Latest News, Law Law Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

San Francisco Archdiocese files for bankruptcy amid child abuse lawsuitsThe archdiocese said the move would help facilitate restitution, but critics called the move an attempt to deny justice and transparency for abuse survivors.
Source: washingtonpost - 🏆 95. / 72 Read more »