FTX’s Bankruptcy Proves Going Broke Ain’t Cheap

According to a report from Bloomberg, the ongoing bankruptcy case of the collapsed cryptocurrency exchange/pseudo ponzi scheme FTX has racked up nearly $1 billion in lawyer fees—and that figure continues to climb as firms continue to try to unwind Sam Bankman-Fried’s mess and make creditors whole. Per Bloomberg, $948 million has already been paid to more than a dozen law firms involved in the FTX bankruptcy case—and $952 million in fees have been approved by the court thus far. That figure makes FTX one of the most expensive Chapter 11 bankruptcies 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 catastrophe, which cost $6 billion, and Nortel Networks, a telecommunications company that went under in 2009 and did significant damage to the Canadian economy, which cost more than $2 billion. While the costs keep climbing in the FTX case, creditors waiting to get their money b ... Read full article.