Breaking down the FTX bankruptcy: how it differs from other Chapter 11 cases

FTX's bankruptcy has left creditors, investors and industry experts wondering what's next - Here's what we can expect.

Analysis

Collapsed crypto exchange FTX and 130 affiliates filed for bankruptcy in Delaware on November 11. Chaos ensued as a number of FTX creditors, investors, and industry experts began to wonder what would happen next.

Laura Shin, crypto journalist, author and host of the Unchained podcast, tweeted on Nov. 15 asking if the alleged loan deal between FTX and Alameda - the company's venture capital arm - will affect creditors and investors. clients. possibility of recovering funds.

Could a big success for FTX Ventures be a viable path to recovery for FTX creditors and clients? @wassielawyer and @ThomasBraziel think so, although it could take up to… 10 years.

full episode: https://t.co/xyHyTC59sw pic.twitter.com/DpDXg1oORK

— Laura Shin (@laurashin) November 15, 2022

Caitlin Long, founder of Custodia Bank, a Wyoming bank specializing in digital assets, tweeted that this would be the most complex bankruptcy in US history.

I DON'T THINK IT'S AN UNDERSTATEMENT to predict that @FTX_Official Chapter 11 will be the most complex bankruptcy in US history. No clear commercial law roadmap regarding #crypto for the judge to follow. US bankruptcy law has a "presumption against extraterritoriality". Every creditor doxxed pic.twitter.com/RFipf062RS

— Caitlin Long ⚡️ (@CaitlinLong_)