Legal Expert: FTX Bankruptcy Case Could Last Several Years

In an interview, Alan R. Rosenberg, a partner at Markowitz Ringel Trusty Hartog, stated that FTX's bankruptcy case will likely be more protracted than other cryptocurrency bankruptcies such as Celsius and BlockFi. This is because FTX is initiating multiple claims for recovery or avoidance litigation in an attempt to reclaim funds paid out weeks and months prior to the bankruptcy. Rosenberg said that given some of these transfers could be very significant and some are against large organizations, I believe these organizations have substantial resources to protect themselves so it's likely that some of this could go on for quite a while. Rosenberg added that such claims typically get resolved in out-of-court settlements and do not proceed to trial since settlement costs are usually lower. However, negotiating solutions also takes time. Moreover, one key issue with such lawsuits is how to calculate the value of cryptocurrencies over time. To my knowledge, there currently isn't any clear precedent on how cryptocurrencies should be valued in avoidance litigation.