FTX collapse: 5 angles for investors to consider in this crisis

THERE have been previous downturns in the crypto assets markets, but the present crypto winter is arguably unprecedented in terms of the scale involved. The collapse of the world’s second-largest cryptocurrency exchange has sent shockwaves across the world and many investors are unsure where to turn to. 

FTX Trading and its entities filed for protection under the US Chapter 11 regime. As a result, any court suit or arbitration claims made by investors against these FTX entities would likely be suspended in favour of the insolvency framework.

Even if investors have a judgment sum or arbitration award against FTX, that could at best be a ticket to queue up in the insolvency process.