Its de facto insolvency.
Pretty much defacto insolvency. More a liquidity issue though. Homes and buildings have value but are not very liquid. Can takes months or years to liquidate. If everyone wants their money out of property at the same time, the values sink and the management has to liquidate the assets and/or borrow against the portfolio and pass the risk onto others. But the good new is FTX can buy the land for newly minted crypto coins.