When I think about a crypto company filing for bankruptcy my mind almost immediately flies to 3AC and how their collapse shook the entire crypto space. Due to 3AC, not only were funds tied up with them directly but it also caused more or less a bank run on several other companies which were forced to also enter bankruptcy due to their exposure. Looking back at how those initial bankruptcies have played out it becomes pretty clear those companies were paper houses that got water thrown on them. In the remains, there does not seem to be enough for people to expect to get much if anything back.

Then came the second wave led by the FTX failure and the Gemini Earn collapse. Compared to the other collapses in the first wave this second wave with FTX and Gemini affected US crypto users in a way that did not happen in the first wave. Both filed bankruptcy and lawsuits in the US further exposing and making publically available what was going on and what the damage was.

Except.... these two broke the typical bankruptcy trend.

A couple of months ago FTX was able to announce and back up in court filings that their assets have exceeded their liabilities. Pulling that off is rare even in traditional markets. While it has not been announced yet it does line up a really good chance that people could get back most if not possibly all of their money which I think is safe to call a HUGE win. Then two days ago we got the Gemini news which as someone who had assets stuck in there blew me away. Not only are we going to get back what we initially put in but also what we earned in whatever asset that is from BTC, ETH, BAT, USDC, etc.

Because of these two most recent bankruptcies and how they have played out, it makes me wonder has the crypto space turned a page. Could the industry, without any true or specific regulations, cleaned itself up, and at least presently the big companies that the public knows about are no longer made out of cards like they once were?