The FTX bankruptcy situation is getting worse as the company is spending $1. 5 million on legal fees every day. Creditors are worried.
Lawyers and other bankruptcy experts are spending a lot of money while examining the leftover parts of the big crypto exchange, CoinDesk reported. Creditors are worried about the money being used up quickly during the bankruptcy process.
As discussed in a meeting about going bankrupt, the increasing money problems have started discussions among people involved.
The people who are owed money are upset because the money is being spent slowly and they have to pay a lot of bills, which is affecting how much money they can get back.
“They are now making nearly $50 million each month in fees, and they have hundreds of lawyers, financial advisors, and bankers working on the job almost all the time,” Kris Hansen, a lawyer from Paul Hastings,
The lawyer said that every dollar used for the case means creditors don’t get that money.
Although a lot of money is being spent on the bankruptcy, the FTX bankruptcy case is very complicated.
Making things more complicated is the discussions with other bankrupt crypto companies, such as crypto lender Genesis and its owner Barry Silbert’s crypto group Digital Currency Group (DCG).
Furthermore, the bankruptcy is made more complicated by differences in FTX’s financial records.
The company’s CEO, John J, has agreed to this. Ray III has accused FTX’s old management of not keeping good records and hiding the losses.
$200 million used in seven months.
The costs of the bankruptcy have added up to $200 million in the first seven months of the case.
Two months ago, someone who was not part of the company said the costs were very high. But they also said that the company needed to spend a lot of money to fix the complicated bankruptcy.
FTX wants to pay back the people it owes money to using regular money instead of Bitcoin or Ether. Mike Novogratz’s company Galaxy Digital is going to help FTX get the most money possible for the cryptocurrencies it owns.