Will FTX Customers Ever Recover Their Assets? Two Insolvency Experts Weigh In

Wassielawyer, a lawyer specializing in restructuring and insolvency, and Thomas Braziel, founder and CEO of 507 Capital, talk about the bankruptcy of FTX. 

Show highlights:

• what the bankruptcy process of FTX is expected to look like
• why FTX got to the the point of filing for bankruptcy protection
• why Wassie thinks Alameda is dead
• why FTX filed for bankruptcy in the US given that it’s a Bahamian company
• how FTX’s balance sheet is composed and whether it includes Alameda
• whether Justin Sun will be dragged into the bankruptcy
• how FTX’s terms of service differ from Celsius’s and Voyager’s
• how the $600 million hack affects the bankruptcy proceeding
• whether it’s worth it to spend millions of dollars in law firms to go after the hacked money
• what’s the impact of the 192 million FTT tokens that were printed Saturday night
• what will happen with the fork of Serum and the forked tokens
• the consequences for all the projects that FTX invested in
• why Wassie thinks that tokenizing the liabilities could be a good potential solution
• how the FTX’s bankruptcy affects Voyager’s proceedings and customers
• whether FTX’s bankruptcy has put BlockFi in trouble

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Wassielawyer:

• Twitter
• Thread on community buyout
• Previous Unchained episodes:
• Why the Messy 3AC, Celsius, and Voyager Bankruptcies Will Drag on for Years
• Three Crypto Bankruptcies: 3AC, Celsius and Voyager. What Happens Now?

Thomas:

• Twitter
• 507 Capital
• Previous Unchained episodes:
• Will Celsius Survive the Bankruptcy Process?

Episode Links

Previous coverage of Unchained on FTX:

• Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets
• The Chopping Block: FTX: The Biggest Collapse in the History of Crypto?
• Sam Bankman-Fried on How to Prevent the Next Terra and 3AC

FTX Collapse:

• FTX filed for Chapter 11 bankruptcy protection
• Sam Bankman-Fried built a “backdoor” to his FTX exchange to change financial records and move funds without alerting others.
• $600 million hack
• Unchained coverage:
  • The Bahamas Loophole: FTX Users Buy KYC Accounts to Withdraw Crypto
  • Could FTX’s Bankruptcy Trigger a Domino Effect?
  • FTX May File for Bankruptcy After Binance Walks Off the Deal
  • FTX Needs $8B to Meet Investor Withdrawals: Report
  • Tron Founder Justin Sun Says He Is Working With FTX on a Solution
  • US DOJ Joins SEC and CFTC Probe of FTX
  • FTX-Issued Wrapped Solana Tokens Could Add to DeFi Contagion: wBTC Creator
  • Sequoia Capital Writes Off $214M FTX Investment to Zero

Contagion:

• Serum Fork in the Works Amid Fears That FTX-Owned Upgrade Keys Are Compromised
• BlockFi Halts Withdrawals Amid FTX Crisis
• Voyager had to reopen the bidding process for its assets