Crypto Exchange Giant FTX Collapses, Files for Bankruptcy

Loeb Restructuring & Bankruptcy partner Daniel Besikof is quoted in multiple publications discussing cryptocurrency exchange platform FTX and its related entities’ decision to file for a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the District of Delaware on November 11, 2022. 

In a conversation with ABC News, Dan discussed how FTX’s bankruptcy will impact its customers who are also effectively creditors. “Unlike a case where there's (securities insurance in the failure of a brokerage) or where the FDIC steps in with a bank failure, these customers are totally exposed,” Dan said. 

According to a CNBC article, new details regarding FTX’s bankruptcy filing revealed that billions in FTX customer assets are now caught in limbo between a bankruptcy court in Delaware and liquidation in the Bahamas. “There are some issues that require either coordination or fighting to figure out — there’s going to be some jockeying when it comes to assets in the Bahamas vs. the U.S.,” Dan told the news outlet. He went on to add, “The Bahamas folks are taking a broader read of their mandate and the U.S. is taking a more technical read.”