Creditors confront centuries-old laws in some cases, as they demand bankrupt crypto exchange FTX makes them whole.
(Bloomberg) — Listen to Bloomberg Crypto on the iHeartRadio App, Apple Podcasts or Spotify.
You’ve probably heard financial regulators refer to the crypto industry as “the Wild West.” But instead of shoot-outs and sheriffs, in crypto, you get financial experimentation, hackers and pretty extreme risk-taking (in hopes of yielding extreme returns) — in some cases, with peoples’ hard-earned savings.
With so many bankruptcies in the digital-asset space, people allegedly wronged by crypto are increasingly turning to the law for redress. The only problem is, how do you fit something so new into laws that are often centuries old? That’s the conundrum lawyers and creditors are facing in the case of FTX, the crypto exchange that collapsed into bankruptcy last year.
In this episode, we discuss the legal complexities underlying the FTX bankruptcy and how the rules change across jurisdictions — from the sunny Bahamas to the cloudy skies of England.
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This podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mohsis Andam and Ty Butler. Sound Design/Engineer: Desta Wondirad.
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