FTX’s Bankruptcy Process Could Last Years

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In 2023, notable for numerous crypto bankruptcy cases, the largest one involving FTX creditors seeking to recover over $8 billion might extend over several years due to the complexity of disputes among numerous individuals and entities.

Alan R. Rosenberg, a partner at Markowitz Ringel Trusty & Hartog, predicts a prolonged legal battle compared to some other crypto bankruptcies like Celsius and BlockFi.

FTX is engaged in litigating multiple clawback claims, aiming to recover funds disbursed in the period leading to insolvency.

Rosenberg notes that significant transfers, often involving major organizations, could lead to protracted legal proceedings, typically resolved through settlements outside the court, though the negotiation process itself can be time-consuming.