The collapse of FTX Group may not yet be the end of its contagious spread, as clawback provisions could force business and investors to return billions of dollars paid in the months leading up to the crypto exchange's collapse, an insolvency attorney told Cointelegraph.
In the event of a clawback to recover funds for creditors, the bankruptcy court could determine the return of the crypto assets or the money equal to the value of the crypto transferred, explained bankruptcy attorney Mark Pfeiffer, who is a member of the Blockchain and Crypto Assets Practice group at law firm Buchanan Ingersoll & Rooney."If the court decides to require the defendant to pay the value, it is not clear whether the amount will be the value at", noted Pfeiffer.
There are three main types of clawback, Pfeiffer explained Cointelegraph. The first preference under section 547 of the Bankruptcy Code allows the debtor or a trustee to avoid any transfer of property made to a creditor within 90 days before the bankruptcy while it was insolvent. "Although there may be fraud involved in the FTX case, it may not be made with the intent to defraud creditors. The intent might not have anything to do with creditors. It may be that the intent was to solely enrich the principals."
I wouldn't. They would have come after me with lawyers.
I have, and will be happy to send all the crypto I have left from the Cel. thieves. it's not much, but would be happy to help. may need some help with the gas fees (yes, even the BNB gas, sadly....)
That’s very funny to me and how about about all the US politicians returns every dollar they received as well. They can just print more money
Your sour grape speculative “reporting’ is so pathetic!
But binance already paid enough to take ftx down.
Lol! Does this happen if JP Morgan or BoA was an early investor in some fraudulent stock exchange? Doubt it.
Return to whom though?
In the form of $FTT token.
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