{"id":24987,"date":"2023-06-20T10:45:19","date_gmt":"2023-06-20T14:45:19","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/ftx-spent-over-120-million-on-advisory-fees-in-just-three-months-as-bankruptcy-proceedings-continue\/"},"modified":"2023-06-20T10:45:20","modified_gmt":"2023-06-20T14:45:20","slug":"ftx-spent-over-120-million-on-advisory-fees-in-just-three-months-as-bankruptcy-proceedings-continue","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=24987","title":{"rendered":"FTX Spent Over $120 Million on Advisory Fees in Just Three Months as Bankruptcy Proceedings Continue"},"content":{"rendered":"
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The bankrupt crypto exchange FTX is facing escalating legal and advisory costs, recent filings submitted by the exchange\u2019s bankruptcy advisors have revealed.<\/p>\n

Judging from information in the filings, FTX’s advisors billed the exchange a staggering $121.8 million in fees and expenses for the period between February 1 and April 30.<\/p>\n

Leading the pack, law firm Sullivan & Cromwell charged FTX $37.6 million, accounting for 30.9% of the total fees and expenses.<\/p>\n

On the other hand, investment banking firm Jefferies billed the lowest amount, representing only 0.6% of the total costs.<\/p>\n

In addition came restructuring consultants Alvarez and Marsel, who charged FTX $37 million, along with over $1.1 million in additional expenses such as meals and accommodation.<\/p>\n

Debate about rebooting exchange gains traction<\/h2>\n

The significant costs associated with FTX’s bankruptcy proceedings have sparked a movement among former clients to reboot the exchange under new leadership.<\/p>\n

This initiative aims to restore value to customers and has garnered support from individuals such as Travis Kling, Chief Investment Officer at crypto hedge fund Ikigai Asset Management.<\/p>\n

Writing on Twitter in March, Kling said a relaunch would be one of the most positive outcomes for creditors, given the regulatory challenges faced by other major exchanges, including Coinbase and Binance.<\/p>\n

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The movement, known as the FTX 2.0 coalition, is spearheaded by the crypto influencer known as Loomdart.<\/p>\n

Loomdart has written extensively about a potential restart of FTX on Twitter, and said as recently as on Tuesday that a \u201cproperly executed FTX 2.0\u201d can greatly cut down on the time it will take for creditors to get their money back.<\/p>\n

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In the midst of these developments, FTI Consulting has dedicated considerable time and billed fees amounting to $761,997.70 for a workstream titled “Exchange restart,” as disclosed in the filings.<\/p>\n

As the bankruptcy proceedings of FTX continue, the mounting costs serve as a catalyst for efforts to revive the exchange and deliver value back to affected customers.<\/p>\n

In all likelihood, the coming months will determine the fate of FTX and whether it can emerge as a new exchange from bankruptcy, potentially marking a turning point for the embattled platform.<\/p>\n<\/p><\/div>\n