Legal experts say FTX bankruptcy case could drag on for years

On January 2nd, it was reported by The Block that the FTX bankruptcy case may take several years to resolve. This is mainly due to FTX lawyers attempting to recover multiple payments made by the exchange before the bankruptcy, resulting in multiple retrospective claims. Legal expert Alan R. Rosenberg pointed out that compared to other cryptocurrency bankruptcy cases such as Celsius and BlockFi, the FTX case submitted in November last year will take longer to resolve.

FTX is currently trying to recover funds spent by its former leadership, while also facing a claim of up to $24 billion from the US Internal Revenue Service, which claims that FTX did not fully pay taxes. In addition, FTX is also dealing with multiple lawsuits, including lawsuits against former CEO Sam Bankman-Fried and his parents, as well as payment recovery lawsuits against its charity and multiple celebrities. These lawsuits are usually resolved through out-of-court settlements, but the negotiation process itself also takes time.

Furthermore, calculating the value of cryptocurrency over time and whether creditors should be repaid in cryptocurrency or fiat currency has become a challenge in cryptocurrency bankruptcies.