FTX’s wind-up is set to be very expensive by any measure according to Katherine Stadler, a bankruptcy attorney appointed in March to check fees. Professional fees have already amounted to over $200 million, with lawyers and other professionals having already racked up nearly 35,000 billable hours by the end of January. Stadler noted that the largely unregulated financial system in which FTX operates has contributed to the high costs, with nonexistence of even the most basic corporate governance being a factor.
Stadler praised the work of the professionals involved, noting that very few firms could have accomplished what these professionals accomplished in 90 days. However, she has called for some of the fees to be reduced, with lead counsel Sullivan & Cromwell being asked to reduce its $42 million bill by some $650,000.
John J Ray III, the new CEO of FTX, has been attempting to settle the exchange’s affairs since it collapsed in November. Some of his filings hint at an attempt to reboot operations as FTX 2.0, with a bid by the U.S. government to investigate FTX’s downfall being referred to the Court of Appeals.