Navigating the World of Bankruptcy: FTX Case Study

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Exploring the intricate ecosystem of Chapter 11 bankruptcy through the lens of FTX's financial collapse, involving opportunistic investors, distressed asset brokers, and the unique positioning of former customers turned unsecured creditors. The chapter details the strategies and dynamics in buying bankruptcy claims, the impact of market conditions on decision-making, and the anticipation of potential windfalls as the value of FTX claims rise significantly.

For the last year and a half, the story of FTX has focused largely on the crimes and punishment of Sam Bankman-Fried. But in the background, the actual customers he left behind have been caught in a financial feeding frenzy over the remains of the company.

On today's show, we do a deep dive into the anatomy of the FTX bankruptcy. We meet the vulture investors who make markets out of risky debt, and hear how customers fare in the secretive world of bankruptcy claims trading.

This episode was hosted by Alexi Horowitz-Ghazi and Amanda Aronczyk. It was produced by James Sneed and Sam Yellowhorse Kesler. It was edited by Jess Jiang, and fact-checked by Sierra Juarez. It was engineered by Cena Loffredo. Alex Goldmark is Planet Money's executive producer.

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