Since the end of 2022, the bankruptcy case of FTX Trading Ltd. in the U.S. Bankruptcy Court for the District of Delaware has been one of the most interesting cases to follow. As many of the details between the FTX case and the trial of former FTX CEO Sam Bankman-Fried could be mistaken for a Hollywood script, the case attracted attention from a spectrum of audiences beyond the legal community.
But what’s perhaps more telling about the FTX case is the anticipated outcome for investors: In May, FTX announced a Chapter 11 plan for most of their customers, including individual investors, to be made whole on their initial investment, plus interest. And on June 25, the judge in the case approved a vote on the plan.
This counters two myths about digital currencies and innovation: 1) that transactions involving crypto- or digital assets are nearly impossible to trace and capture, and 2) that the federal government can’t keep up with innovation in the private sector to stamp out fraud and corruption.
If you would like to discuss any of the information above, please reach out to Kyla Curley.
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