11-21-2022 icon

Recovering funds from FTX likely to take years – Attorneys say

By Lucy Adegbe
FTX employees

As investors show concerns about when they may be able to recover their crypto assets from the recently liquidated trading protocol FTX, chapter 11, attorneys have thrown a bomb, saying it is likely to take more than the next few years.

The digital currency trading company and 130 of its associates signed up for insolvency backing in the United States on November 11.

Chapter 11 attorney Stephen Earel, an associate of the Australia-located Cor Cordis advisory firm, mentioned that it is much of a task in the insolvency procedure to figure out the digital assets and effectively allocate the funds.

The complications that arise from transnational liquidation issues alongside the competing administration are likely to delay the process for years, he added.

Simon Dixon, the owner of the biggest worldwide investment community BnkToTheFuture and an involved party in the Celsius chapter 11 process, briefed that those whose funds are stuck with FTX will be listed as creditors, with representatives to represent them.

Dixon further noted that funds left, after the insolvency charge, would be made accessible to these creditors.

Crypto attorney Irina Heaver highlighted to Cointelegraph that creditors’ interest would get legal backing once FTX commences insolvency procedures. Heaver, however, recommended that parties with huge losses should seek legal counsel and ally with other affected groups.

As noted in a Sunday publication by Reuters,  FTX is estimated to have over a million creditors.