According to a court-appointed examiner, the closure of the cryptocurrency exchange FTX will be "very expensive by any measure."
FTX's New CEO John J Ray III Has Been Attempting to Settle the Exchange's Affairs Since it Collapsed in November
According to a court-appointed examiner, the closure of the cryptocurrency exchange FTX will be "very expensive by any measure," given that professional fees have already exceeded $200 million.
By the end of January, lawyers and other professionals had already accrued close to 35,000 billable hours. 2% of the estate's assets and 10% of the reported cash had already been spent, while 46 of the 242 attorneys working on the case were paid more than $2,000 per hour.
The largely unregulated financial system in which FTX operates and “nonexistence of even the most basic corporate governance” in the Sam Bankman-Fried led crypto exchange has been cited as a contributing factor to the high costs.
FTX's new CEO John J Ray III has been attempting to settle the exchange's affairs since it collapsed in November, and some of his filings hint at an attempt to reboot operations as FTX 2.0.