FTX, one of the most prominent places to buy and sell cryptocurrencies, is one of the best places to do so. It also works with a wide range of NFTs and stocks, so you can combine your holdings. Members of the FTX community can not only buy and sell goods, but they can also make and trade their tokens that can’t be used to buy or sell goods (NFTs). Since FTX is no longer in business, investors wonder when they will get their money back. But bankruptcy lawyers say this could take “decades” to happen. If you are planning to trade Bitcoin, you may consider using a reputable trading platform click here.
Stephen Earel, a partner at the Australian law firm Co Cordis and an insolvency lawyer, said that “realizing” the crypto assets during the liquidation process will be an “enormous exercise.” He also said that figuring out how to give money could take years or even “decades.”
Earel said it’s too bad that FTX customers must wait in line with other creditors, investors, and venture capital funders. He also said that people who did “crypto to crypto trading” might not get a return for “years.”
The CEO of Binance Australia says that these costs could be big if you think about how long it takes to get your money back. He also said that clients would have to pay more for legal and administrative services, which would cut their profits.
Irina Heaver, a partner at Keystone Law in UAE and a digital assets lawyer, told Cointelegraph that people who use FTX in the Middle East would also be affected by the exchange’s closing. The number of FTX users in the Middle East was third most. Heaver knows a lot about the law and digital assets.
Heaver said the situation was already a big problem for the government because it was a “huge regulatory failure.” This was because FTX already had a license and was being watched by Dubai’s new regulator, the Virtual Assets Authority (VARA).
Heaver said that the legal system would only protect the interests of FTX’s creditors “if and when” the company files for Chapter 11 bankruptcy. This means that the courts and people in default will be involved.
People who owe money to FTX have started talking to Perella Weinberg Partners, a company that provides financial services, about selling or reorganizing their debt. But PWP can only be hired once the bankruptcy court says it’s okay.
As part of their recent bankruptcy case, the now-defunct cryptocurrency exchange FTX and 101 of the 130 companies it was linked to said they would start a strategic evaluation of their assets worldwide. The review is a way to give as much value as possible to the people with a stake in the project.
The news release says that FTX has filed for Chapter 11 bankruptcy, and FTX.US is a part of this case. In the announcement, Ray, the new CEO, said that the organization’s primary goal is to “maximize recovery for stakeholders.” However, when this was written, investors who had lost money still needed to be helped.
Customers of FTX are owed billions of dollars. In a court document filed on November 19, FTX listed its biggest debt holders. These people put money into an exchange that is no longer open and are now owed money. The exchange owes about $3.1 billion to its top 50 creditors, and more than half of that, or $1.45 billion, goes to its top 10 creditors.
Ray wrote in the petition that “a significant amount” of FTX’s assets could be “lost or stolen.” He strongly warned investors that it is not “appropriate for stakeholders or the Court to rely on the audited financial statements as a reliable indicator of the financial circumstances” of FTX. He said this is because the audited financial statements need to show how the company is doing financially.
FTX is now looking at what it owns and getting ready to sell or reorganize to pay back its investors. Balance sheets sent with the bankruptcy petition show that Bankman-original Fried’s estimate of how much FTX’s assets were worth was way off.
