I’m not Molly and I’m sure she’d know better than I, but I’m pretty confident that part of this post only applies to grantees who received their grant from one of the FTX entities that is now bankrupt—this is what she means by “the debtor group.”
Essentially, if you received money from an FTX entity in the debtor group anytime on or after approximately August 11, 2022, the bankruptcy process will probably ask you, at some point, to pay all or part of that money back.
I’m not a bankruptcy lawyer, and I know how frustrating of an answer this is, but if the grant came from a non-debtor entity like FTX Foundation Inc., I think it’s very unclear what’s going to happen because a lot depends on information we don’t know yet. The exact sources and timing of any transfers to FTX Foundation may matter. The fact that the corporate form was, clearly, not respected within FTX complicates things further. But the fact that FTX Foundation Inc. was not bankrupt would not by itself confer immunity from the possibility of clawback. That’s 11 U.S.C. 550(a)(2).
I’m not Molly and I’m sure she’d know better than I, but I’m pretty confident that part of this post only applies to grantees who received their grant from one of the FTX entities that is now bankrupt—this is what she means by “the debtor group.”
Essentially, if you received money from an FTX entity in the debtor group anytime on or after approximately August 11, 2022, the bankruptcy process will probably ask you, at some point, to pay all or part of that money back.
I’m not a bankruptcy lawyer, and I know how frustrating of an answer this is, but if the grant came from a non-debtor entity like FTX Foundation Inc., I think it’s very unclear what’s going to happen because a lot depends on information we don’t know yet. The exact sources and timing of any transfers to FTX Foundation may matter. The fact that the corporate form was, clearly, not respected within FTX complicates things further. But the fact that FTX Foundation Inc. was not bankrupt would not by itself confer immunity from the possibility of clawback. That’s 11 U.S.C. 550(a)(2).