Impact

Million

April

The defunct cryptocurrency exchange FTX is facing mounting legal and advisory expenses as it navigates its bankruptcy proceedings.   
Recent data reveals that between February 1 and April 30, FTX incurred a staggering $121.8 million in advisory fees and costs.   
Notably, legal representation from Sullivan &amp; Cromwell accounted for a significant portion of these expenses, totaling $37.6 million. In comparison, investment banking firm Jeffries billed the smallest amount, representing a mere 0.6% of the total costs.   
As FTX grapples with its financial troubles, former clients are exploring options to revive the exchange under new leadership, aiming to provide value to its creditors.   
Rising Legal and Advisory Expenses   
Data from The Block highlights the substantial legal and advisory costs incurred by FTX during its bankruptcy proceedings.   
Sullivan &amp; Cromwell, the legal representation for the exchange, billed a remarkable $37.6 million, constituting nearly 31% of all fees and costs.   
In contrast, investment banking firm Jeffries billed the smallest amount, representing only 0.6% of the total expenses. Restructuring consultants from Alvarez and Marsal added to the costs with a billing amount of $37 million.   
Additional expenses, including meals, lodging, and miscellaneous expenditures, amounted to over $1.1 million.   
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Reviving FTX: A Potential Path Forward   
Amidst the growing expenses, some of FTX's former clients are rallying to resurrect the exchange under new leadership. This move aims to bring value back to the exchange's creditors.   
Industry experts, such as Travis Kling, Chief Investment Officer at Ikigai Asset Management, have hailed this potential reboot as one of the most optimistic outcomes for creditors.   
Notably, Ikigai had a significant portion of its assets on FTX, underscoring the vested interest in the exchange's revival.   
FTX's Troubled Past and Impact on Users   
FTX's downfall was triggered by control failures and mismanagement by its previous management team, leading to financial instability concerns and massive customer withdrawals.   
The exchange's collapse left over a million users devastated, including everyday individuals who invested their hard-earned savings. Rep. Maxine Waters, D-Calif., has highlighted the plight of these users, emphasizing the speed at which their investments vanished. 
The post <a rel="nofollow" href="https://optimisus.com/market/market-news/ftxs-bankruptcy-expenses-surge-legal-and-advisory-fees-reach-121-8-million/">FTX’s Bankruptcy Expenses Surge: Legal and Advisory Fees Reach $121.8 Million</a> appeared first on <a rel="nofollow" href="https://optimisus.com">Optimisus</a>.

FTX’s Bankruptcy Expenses Surge: Legal and Advisory Fees Reach $121.8 Million

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