Cryptocurrency investors with holdings at crypto exchange FTX are learning a lesson about investor protections, as the fate of their money now lies in bankruptcy proceedings that could take many years.
In a CNBC.com article, business restructuring counsel Daniel Gwen explains that customers holding their crypto assets at FTX do not get the financial protection afforded to defunct brokerage firms that sell stocks, bonds and other securities from the Securities Investor Protection Corporation since digital assets exist in a gray area of regulation and federal money is not available to backstop crypto customers.
In the CoinDesk-TV First Mover program, Daniel Gwen examined the FTX crypto exchange bankruptcy process including implications for FTX token investors and next steps in the bankruptcy proceeding including inventory analysis, identification of missing components and maximizing company value.
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