In the FTX thunderstorm, FTX, the world's second largest exchange, went bankrupt due to misappropriation of funds and chaotic management. Chinese users are excluded from the compensation program due to regulatory restrictions. Opting for Bahamian liquidation proceedings may benefit Chinese creditors. FTX's relatively high percentage of payouts is attributable to asset recovery, market timing, and modern regulatory and technical support. There is still hope for Chinese creditors to choose the right procedures, rely on professional support and keep an eye on developments. In investing, the legal framework is crucial.
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In the FTX thunderstorm, FTX, the world's second largest exchange, went bankrupt due to misappropriation of funds and chaotic management. Chinese users are excluded from the compensation program due to regulatory restrictions. Opting for Bahamian liquidation proceedings may benefit Chinese creditors. FTX's relatively high percentage of payouts is attributable to asset recovery, market timing, and modern regulatory and technical support. There is still hope for Chinese creditors to choose the right procedures, rely on professional support and keep an eye on developments. In investing, the legal framework is crucial.