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Legal professional Ken Feinberg joins Yahoo Finance live to talk about the continuing fraud investigation surrounding FTX and the business's bankruptcy.

Video Transcript

FINANCE - So let's persist with crypto and speak extra about the fallout of the FTX chapter and that continuing to play out in courtroom with millions of creditors nevertheless attempting to find cash. We these days spoke with Ken Feinberg, the former administrator of the September 11 victim Compensation Fund, about collectors and what they could expect going forward. Let's take a hear.

KENNETH FEINBERG: neatly, it's advanced. And it's somewhat entertaining as a result of within the FTX chapter there are two questions that are front and center. what's the price of the asset in chapter? making an attempt to check the liquidated cost of FTX subject to distribution to collectors I consider is going to be a fairly enjoyable problem. Secondly, you mention over 1,000,000 creditors misplaced their value within the enterprise.

how many of these creditors can exhibit a loss? Are they going to in fact come ahead, provide their name, give their handle, designate the volume of the loss, prove that loss in a forex that is terribly, very opaque. So or not it's going to be an enchanting bankruptcy going forward, each in terms of asset price within the chapter and choosing who's an eligible creditor entitled to a examine from the bankrupt estate.

or not it's actually a sophisticated and pleasing case. Ken, simply in terms of the transparency ingredient and the incontrovertible fact that the Bahamian government's involvement in this, does that extra complicate what the next several months, doubtlessly years, could seem like with this case?

KENNETH FEINBERG: sure. potentially years. feel about it. the 1st step before you come to a decision who's an eligible creditor, you need to investigate the full value of the asset it really is purchasable to the chapter court docket for purposes of distribution. neatly, that sounds like it can be a fairly advanced problem corralling all of these property at any place they could be and remodeling them into actual bucks purchasable within the chapter court docket.

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after which, of route, or not it's a world chapter. I mean, you're going to need to determine who's an eligible creditor. and will the collectors be inclined to come back forward? lots of them have used cryptocurrency to mask their involvement, preserve their identity inner most, not disclose. smartly, in case you are looking to receive now a part of the property, you might have acquired to return ahead and with daylight lay it on the line. i'm a creditor. here is my crypto number. he's my loss based on what I invested. i'm wondering what number of of these buyers can be inclined to come forth now. And Ken, you have the investors in FTX. you have those that lost the cash on the tokens as well. and then you also have some of those celebrity endorsers and making an attempt to bear in mind their relationship as neatly. As you form of section these out, how do those paths in fact end up enjoying out?

KENNETH FEINBERG : The bankruptcy courtroom will need to make a decision whether the endorsers are liable. a extremely unusual lawyer in this country, David Boies, has brought a class motion lawsuit. he's bold. He'll marshal his case. He'll lay out the arguments in an effort to grasp others accountable financially anyway FTX administration and FTX buyers-- FTX managers and operational americans.

Ken, evaluating what we're listening to from FTX to the a few cases-- many, many situations-- that you've got labored on during the past, how does it stack up simply in terms of the complication component of it and simply in uncharted territory being it being in the crypto business and the unfamiliarity that so many individuals have with that space?

KENNETH FEINBERG : On the one hand, it's a lot extra complicated. As I've talked about, you might be trying to separate and conclude the puzzle to try and determine what FTX means when it comes to dollars and who's an eligible creditor in FTX. having said that, I have to say you might be speaking here about funds. you're not speaking about 9/eleven lives lost. you are now not speaking about victims killed in the Deepwater Horizon oil rig explosion or the Boston Marathon bombings the place it's demise and lifestyles-altering actual harm.

I have a bit little bit of difficulty assuming that this complicated-- very complicated-- FTX bankruptcy is as emotional or as wrenching as lack of hundreds of lives in 9/11 or the Boston Marathon bombings or different horrible, splendid tragedies the place a fund changed into created-- no longer in chapter-- where a fund become created to compensate very irritated and very emotionally distraught victims and their families.