Background

The bankruptcy of FTX Trading, a major U.S. crypto assets exchange, is bringing to light the pitfalls of global bankruptcy. The reason for this is that FTX Japan, a Japanese subsidiary of FTX Trading, also filed for Chapter 11 bankruptcy protection in the U.S. This differs from the bankruptcy of Lehman Brothers Group given the Japanese subsidiary of FTX Trading did not file for bankruptcy in Japan due to a significant excess of assets.

Background
New approach
Creditor involvement
Comment

It is common practice in many jurisdictions – including Japan – to elect a sponsor to finance a failing business in order to revitalise it. In many insolvency cases, such election is necessary for a successful restructuring.