The Commodity Futures Trading Commission’s lawsuit against bankrupt FTX sets up the government as a potential creditor, but other high-profile Chapter 11 cases provide a glimpse of how the dynamic will play out.
Bankruptcies that followed large-scale financial scandals, from Bernie Madoff to MF Global, could provide a roadmap for how the US derivatives regulator can go after penalties tied to FTX.com and its affiliates.
FTX’s legal troubles intensified this week after the barrage of government enforcement actions, including the arrest of founder Sam Bankman-Fried in the Bahamas. The CFTC lawsuit landed on the same day the Securities and Exchange ...
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