📣 FTX Bankruptcy Could Be a Long Haul
posted 2 Jan 2024
Alan R. Rosenberg, an attorney with the American firm Markowitz Ringel Trusty & Hartog, believes the FTX bankruptcy process could extend over several years. The complexity is due to the vast number of creditors involved and the contentious nature of the claims. As an example, FTX's leadership continues efforts to reclaim substantial funds transferred to various entities just before its bankruptcy.
"It's very possible that some of these things could last for a long time," Rosenberg commented in an interview.
This potential delay stems from the involved parties' preference to resolve mutual claims outside of court, which is considerably more cost-effective. Rosenberg points out that the defunct exchange is also plagued with a slew of other issues, including accusations of tax evasion. New claims might emerge over time.
As for the specifics of compensating the harmed users, Rosenberg is unable to provide a detailed response, citing the lack of historical precedent. He views this case as pioneering for the U.S. legal system, potentially establishing guidelines for handling similar scenarios in the future.
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