According to a report from Bloomberg , the ongoing bankruptcy casing of the collapse cryptocurrency exchange / pseudoponzi system FTXhas rack up near $ 1 billion in lawyer fees — and that figure continues to climb as firms continue to attempt to unbend Sam Bankman - Fried ’s mess and make creditor whole .
Per Bloomberg , $ 948 million has already been paid to more than a dozen law firm involve in the FTX bankruptcy vitrine — and $ 952 million in fee have been approved by the motor lodge thus far . That figure make FTX one of the most expensive Chapter 11 bankruptcy in history . It trails only the bankruptcy of Lehman Brothers , the investment bank at the heart of the subprime mortgage crisis that resulted in a global financial disaster , whichcost $ 6 billion , and Nortel Networks , a telecommunications ship’s company that proceed under in 2009 and didsignificant hurt to the Canadian saving , whichcost more than $ 2 billion .
While the costs keep climbing in the FTX case , creditors wait to get their money back might not mind too much . Prior reporting indicates that FTX expects to have about$16.3 billion leftonce it is done selling off its plus . About $ 11 billion is owe to customers and creditor , meaning there should be more than enough to make them whole . FTX customers areexpected to get back 118%of what they had in their accounts ( though government governor are likely going to get stiffed , along with company shareholders ) . Who says crypto is a sorry investing ? Look at those counter !
Sam Bankman-Fried being escorted at a courthouse.© Photo: John Minchillo (AP)
FTX ’s failure has proven to be costly in magnanimous part because the party was an inviolable spate . Despite hold $ 32 billion in note value at is peak , Bankman - Fried and the troupe used Google Docs , Slack , and Excel spreadsheets to manage assets and liabilities , per courtyard filings . The company had a QuickBooks membership for accounting system , which is design for small commercial enterprise and not an external currency exchange , and it had80,000 transactions unprocessed in its account , put in in a booklet title “ require My Accountant . ” John Ray III , an insolvency expert who was task with overseeing the failure , saidhe had never seen “ such a complete failure of corporate controls and such a complete absence of trusty financial information”—and that guyliquidated Enron .
Given all that , it ’s a minor miracle that not only are these ( extremely well - give ) lawyers able-bodied to parse all of FTX ’s books but will also end up actually being able to make customers whole despite the arise price of bankruptcy . While the lawyer keep meddlesome with all that , Bankman - Fried apparentlyfound his way back to his Twitter accountthe other day to offer his thoughts on inefficiencies at large organizations . How much do you intend they ’d have to give Sam from the settlement to secure he ’d never tweet again ?
BankruptcyFTXSam Bankman - Fried
Daily Newsletter
Get the best tech , science , and acculturation tidings in your inbox daily .
News from the time to come , delivered to your present .
You May Also Like
