Here’s How Much the FTX Bankruptcy Case Has Cost in Legal Fees

The ongoing bankruptcy proceedings for FTX have already incurred close to $1 billion in legal fees, positioning it among the priciest cases in U.S. history.

As of early January, nearly $948 million has been paid to legal teams handling the Chapter 11 case, with the court approving fees exceeding $952 million. This substantial sum coincides with FTX’s efforts to begin reimbursing its customers, which started on February 18.

A closer look at the breakdown reveals that Sullivan & Cromwell LLP, FTX’s primary law firm, has received over $248 million for its services.

Alvarez and Marsal, the firm advising FTX on financial matters, has been paid around $306 million. Additionally, legal representatives advocating for FTX’s customers have collected approximately $110 million, while John Ray, who stepped in as CEO after FTX’s collapse, has seen his consulting firm earn over $8 million.

Despite the eye-watering fees, some legal experts argue that the costs are justified, as the legal teams have been instrumental in locating and tracking billions of dollars in digital assets and funds. The bankruptcy proceedings remain active, with ongoing efforts to recover more funds from FTX’s scattered accounts.

Notably, lawsuits are still pending, including one against Binance. While FTX’s case ranks as one of the most expensive, it still falls short of the $6 billion in fees from the Lehman Brothers bankruptcy, the most costly in U.S. history.