Stephen Earel, partner and bankruptcy attorney at Australia-based Co Cordis, stated that it will take years for FTX investors to repay their assets.
Popular cryptocurrency exchange FTX continues to suffer after its bankruptcy. Many institutional and small-scale investors have started legal processes to save their assets in the company. The USA stepped in to understand and examine all processes. However, FTX’s Chapter 11 bankruptcy and bankruptcy protection request drew attention. In such a case, it seems like it will take a long time for investors to recover their assets.
Lawyer Thinks FTX Litigation Will Take Many Years
Cryptocurrency exchange FTX suffered about 1 million people after its bankruptcy. This situation, which extends to legal processes, means examining the assets of millions of users in the stock market.
Bankruptcy attorney Stephen Earel said it would take years to figure out how to distribute the funds. The attorney highlighted the complexities that come with cross-border bankruptcy issues and competing jurisdictions. Global bankruptcies and grievances led to the advancement of the legal process in a wide range.
Earel stated that all investors who want to buy back their assets are in the same category. According to the lawyer, there is no distinction between institutional investors or small investors.
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