FTX’s bankruptcy is rapidly approaching a $1 billion mark in legal and financial costs, placing it among the most expensive Chapter 11 cases in U.S. history. Court records show that nearly $948 million has been paid to firms working on the case, with over $952 million approved so far. Despite this significant cost, most customers are expected to recover almost 118% of their claims, a rare positive outcome in bankruptcy proceedings according to Bloomberg. These high fees stem from efforts to recover billions of dollars in assets spread across complex financial structures. Lawyers and advisors have played a crucial role in these asset recovery processes, with hedge funds who purchased FTX claims at steep discounts among those benefiting most. 7 FTX initiated initial distributions to creditors last week, while legal teams continue to track additional assets. Law firm Sullivan & Cromwell has been paid over $248 million, and financial advisor Alvarez & Marsal has received roughly $306 million, according to Bloomberg. This firm also oversees customer claims and other creditor matters and charges approximately $110 million for these services. Sullivan & Cromwell has a history of handling complex cases like the 2008 financial crisis, assisting with JPMorgan Chase’s acquisition of Bear Stearns and government bailouts of AIG during that time period. The firm also provided legal and financial counsel following the Enron bankruptcy, one of the most significant corporate fraud cases in history. FTX’s bankruptcy costs have exceeded those of other crypto bankruptcies such as Celsius, Genesis, BlockFi, and Voyager Digital, which together incurred around $502 million in expenses. The case continues to be challenged by a lawsuit against Binance seeking $1.8 billion, in addition to ongoing legal action. While FTX’s costs are substantial, they remain significantly lower than Lehman Brothers’ $6 billion bankruptcy – the most expensive in U.S. history according to Bloomberg.