According to a Bloomberg report, the ongoing bankruptcy case is the collapsed cryptocurrency exchange/pseudo-Ponzi scheme FTX raised nearly $1 billion in attorney fees, and that figure continues to climb as companies continue to work hard to climb as companies continue to try to relax Sam Bank bank chaos and make creditors across creditors.
Per Per Bloomberg, which has paid $948 million in fees, has paid to twelve law firms involved in the FTX bankruptcy case, and so far the court has approved $952 million in fees. This number makes FTX one of the most expensive Chapter 11 bankruptcies in history. It lags only behind the bankruptcy of Lehman Brothers, an investment bank at the heart of the subprime mortgage crisis, which led to a global financial disaster costing $6 billion, while Nortel Networks, a telecommunications company that was unrestricted in 2009 and caused significant damage to the Canadian economy and its economy, which led to more than $2 billion.
While fees keep climbing in the FTX case, creditors waiting to get the money back may not mind much. Previous reports show that FTX expects to have about $16.3 billion left once its assets are sold. Owe customers and creditors about $11 billion, which means there should be enough money to make them overall. FTX customers are expected to reclaim 118% of the ones they own in their accounts (although government regulators may become stiff along with company shareholders). Who says cryptocurrency is a bad investment? Look at the rewards!
It turns out that FTX's bankruptcy is largely expensive because the company is definitely a mess. Despite holding $32 billion in value on IS Peak, Bankman Fried, the company uses Google Docs, Slack and Excel spreadsheets to manage assets and liabilities. The company has QuickBooks Accounting qualification, designed for small businesses rather than international currency exchange, does not conduct 80,000 transactions in its account and is stored in a folder called Ask My Accountant. Bankruptcy expert John Ray III, whose mission is to oversee bankruptcy, said he has never seen “a complete failure of company control and no trustworthy financial information at all” and that guy liquidated Anron.
Given all this, it's a smaller miracle that is not only a (very paid) lawyer who can parse all the books of FTX, but ultimately, despite the increasing cost of bankruptcy, it can ultimately make the customer whole. While lawyers have been busy with all this, the other day Bankman blew his way back to his Twitter account to come up with ideas about the inefficiency of large organizations. How much do you think they have to pay SAM from the settlement to make sure he won't tweet again?
