Legal Update

The collapse of the FTX Group

November 15, 2022

The Collapse of the FTX Group

On 11 November 2022, FTX, FTX US, and approximately 135 entities in the FTX Group (including Alameda Research Ltd) entered into the Chapter 11 protective restructuring process in the United States Bankruptcy Court for the District of Delaware. John Jay Ray III has been appointed as CEO and Chief Restructuring Officer. It is reported that restructuring professionals have been appointed, and that steps are taken to secure all FTX assets.

FTX Australia and FTX Express has similarly been placed in administration in Australia.

The restructuring process is in a nascent stage, with FTX stakeholders around the globe paying close attention to how matters unfold.

We have received enquiries relating to these developments. Creditors, investors, clients, and counterparties will understandably be concerned, and will wish to take steps to protect their rights and interests.

We are monitoring the case docket and have reviewed the petition filed on 11 November 2022 in the US proceedings. We have reviewed the terms of service of the two main FTX exchanges, and it appears that issues such as custodial holdings (as opposed to contractual holdings) may be relevant to investors in light of restructuring proceedings.

PDLegal LLC has an active cryptocurrency and blockchain practice – straddling advisory, transactions, and disputes. The firm has acted both for and against crypto-exchanges in various matters, including but not limited to investigations, commercial disputes, and insolvency matters (see article pertaining to Hodlnaut).

Further, the firm’s practice is able to advise on Singapore, Indian, Australian, and English law.

Please reach out to the firm, and we will be happy to discuss how we are able to assist.

Our Partner Gerard Quek acts for crypto-exchanges, written on crypto enforcement, and has acted in enforcement proceedings against crypto assets. He has expertise in acting for claimants in class action suits.

Our Partner Kyle Gabriel Peters represents crypto-exchanges and is experienced in cross-border insolvency matters. He has acted for creditors and insolvency professionals in cross-jurisdiction applications under Chapters 11 and 7 of the Bankruptcy Code and the UNCITRAL Model Law.

Contributed by:

Gerard Quek

Deputy Managing Partner
  • International Arbitration
  • Corporate Commercial & Civil Litigation
  • Financial Regulatory Compliance and Advisory
  • Fraud, Asset Recovery and Investigations
  • Lead - China & Thailand Desk
  • Corporate Practice

Chambers & Partners – Asia Pacific 2023

PDLegal LLC is pleased to announce that Managing Partner, Peter Doraisamy, has been recognised and ranked by Chambers & Partners (Asia Pacific 2023 for Shipping: Domestic: Litigation). The following quotes appear with Peter’s ranking: –

“Peter Doraisamy of PDLegal in Singapore is a noted shipping lawyer in the market. He handles a wide range of disputes, including ship grounding, cargo and fraud-related cases” – Chambers & Partners – Asia Pacific 2023

“He is excellent in litigation. He has very good control of the case, collecting the right evidence and putting this into a very successful trial.” – Shipping Litigation Client

Chambers and Partners is the leading independent professional legal research company operating across 200 jurisdictions. Chambers and Partners delivers detailed rankings and insights into the world’s leading lawyers and law firms.

This ranking is a testimony to the expertise and experience of the Firm’s shipping practice and would not be possible without the support of our clients and friends.

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