- FTX bankruptcy legal fees near $1 billion, ranking among the costliest cases in U.S. history.
- Sullivan & Cromwell LLP, Alvarez & Marsal, and advisers received major payouts amid ongoing asset recovery efforts.
- Despite repayments, lawsuits and investigations continue, with additional legal expenses expected.
The FTX bankruptcy case has become one of the most expensive legal proceedings in U.S. history, with legal fees nearing $1 billion. Court records show that as of January 2, law firms and financial advisers handling the case have received approximately $948 million, with over $952 million in payments approved.
Breakdown of Legal Fees in the FTX Case
Court filings reveal that the lead law firm, Sullivan & Cromwell LLP, has received over $248.6 million in legal fees. Financial adviser Alvarez and Marsal has been paid approximately $306 million for its services. Additionally, advisers representing FTX’s customers have charged around $110.3 million. Acting CEO John Ray’s consulting firm has collected over $8 million in fees.
FTX began its repayment process on February 18, returning funds to affected customers. Despite the significant legal fees, professionals working on the case have traced and recovered billions in scattered digital assets. The legal proceedings remain active, with ongoing efforts to retrieve more assets from FTX’s accounts. Lawsuits related to the case, including one involving Binance, are still pending.
Comparison to Other Bankruptcy Cases
Although the FTX case ranks among the costliest, it remains below the $6 billion in legal fees spent on the Lehman Brothers bankruptcy. Puerto Rico’s public debt restructuring also exceeded $2 billion in costs.
However, the ongoing nature of the FTX case suggests further expenses may arise as investigations and legal battles continue. FTX creditors expect further repayments between April and May. These payments will be processed through Kraken and BitGo as part of the company’s settlement efforts.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
