As the global exchange FTX is dismantled, the costs are piling up to an estimated $1.5 million a day. At a bankruptcy hearing on Wednesday, the creditors’ committee expressed their concern over the rate of spending. “They’ve now moved to a pace of almost $50 million a month in fees, with literally hundreds of lawyers, financial advisors, and bankers working on them practically full time,” said Kris Hansen, a lawyer from Paul Hastings representing the creditors’ committee. “Every dollar spent in the case is essentially a dollar that creditors don’t receive.”
A fee examiner’s report two months ago noted the fees were “remarkable”, but also praised the professionals for their work in recovering creditors’ money from the “smoldering heap of wreckage”. The bankruptcy is further complicated by the need to negotiate with other collapsed crypto giants, such as the recent deal with Genesis that FTX’s Alameda Research could claim $175 million in that company’s bankruptcy.
The representatives of the bankrupt exchange insist they’ve worked “tirelessly” and that the process remains on track. However, Hansen argued the process to potentially reignite an FTX 2.0 is dragging and overly secretive. He also said the debtors’ group hasn’t made enough of an effort to maximize returns on the company’s cash and crypto assets while the case goes on. “Every day counts,” he said.