How did we get here?

The crypto markets were rocked again last week by the collapse and bankruptcy of FTX and Alameda Research. Within a few short days, Sam Bankman-Fried (SBF) and his companies went from a stabilizing force for markets and acting as an industry leader to causing one of the greatest disruptions in digital asset market history.

Commercial bankruptcy practice in the United States is governed by Chapter 11 of title 11 of the United States Code. The focus of Chapter 11 is assisting a distressed company to reorganize its debts to emerge as a going concern or liquidate its assets as part of an orderly wind-down. In this article, we highlight the key benefits available to a Chapter 11 debtor and describe the various stages of a case, including statutory requirements, and types of plans.