Crypto exchange FTX has reportedly been losing $53,000 every hour in ‘bankruptcy fees’ according to recently filed documents. Between August and October, the bankrupt exchange was billed a whopping $118 million in legal and advisory fees, amounting to approximately $1.3 million per day. The costly fees are a result of the extensive legal proceedings surrounding FTX’s bankruptcy case and the need for legal representation and advice. FTX filed for Chapter 11 bankruptcy in August after facing significant financial difficulties, including a failed fundraising attempt. The exchange, founded by Sam Bankman-Fried, has been working to navigate the bankruptcy process and resolve its financial issues. However, the substantial fees being incurred highlight the challenging road ahead for FTX.
The magnitude of the fees being incurred by FTX is staggering, highlighting the severity of the exchange’s financial situation. The $53,000 being lost every hour in ‘bankruptcy fees’ demonstrates just how much FTX is grappling with its financial struggles. The exorbitant bills of $118 million in just three months emphasize the extensive legal proceedings and challenges that the exchange is facing as it attempts to find a way out of bankruptcy. It remains to be seen whether FTX will be able to successfully navigate these challenges and emerge from bankruptcy, or if the significant fees will continue to mount. Nonetheless, this news serves as a reminder of the potential risks and financial hardships that can befall crypto exchanges, further highlighting the need for robust financial planning and risk management in the industry.
