The decisions about clawbacks will occur in bankruptcy court. Legislation that has an effect on pending court litigation in this manner is uncommon (although it does happen). If the Democrats controlled both houses and retroactively passed legislation protecting political donations received from SBF, that would be a massive political gift.
Most ordinary employees, contractors, utilities providers, etc. off FTX have low exposure in my opinion because they have a stronger argument for one of the exceptions in 11 USC 547. For example, payments to the power company were pretty obviously in the ordinary course of business, and the power company provided new value around and after the transfers.
Any insider with significant criminal exposure but with enough other assets to fund a vigorous criminal defense would probably be well-advised not to fight a clawback. Trying to keep ill-gotten gains, especially from retail depositors, does not good to an Article III judge who has the power to give a convicted defendant a lifetime membership to a Club Fed non-resort. All that is to say that public clawback fights from insiders might attract less publicity than one might think.
If the estate tries to clawback from people who made withdrawals during some or all of the 90 day period, that will be a massive source of publicity.
The decisions about clawbacks will occur in bankruptcy court. Legislation that has an effect on pending court litigation in this manner is uncommon (although it does happen). If the Democrats controlled both houses and retroactively passed legislation protecting political donations received from SBF, that would be a massive political gift.
Most ordinary employees, contractors, utilities providers, etc. off FTX have low exposure in my opinion because they have a stronger argument for one of the exceptions in 11 USC 547. For example, payments to the power company were pretty obviously in the ordinary course of business, and the power company provided new value around and after the transfers.
Any insider with significant criminal exposure but with enough other assets to fund a vigorous criminal defense would probably be well-advised not to fight a clawback. Trying to keep ill-gotten gains, especially from retail depositors, does not good to an Article III judge who has the power to give a convicted defendant a lifetime membership to a Club Fed non-resort. All that is to say that public clawback fights from insiders might attract less publicity than one might think.
If the estate tries to clawback from people who made withdrawals during some or all of the 90 day period, that will be a massive source of publicity.
Jason—thanks for this reply. Makes sense to me, with the caveat that I know virtually nothing about bankruptcy law.