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The cryptocurrency company says that almost all customers will be refunded
Afterwards atthe collapse of the cryptocurrency exchange FTX (TTF-USD), whose former CEO Sam Bankman-Fried was convicted of defrauding customers, investors and lenders, hope emerged for the victims. According to a court filing from FTX, nearly all FTX customers will be able to recover their losses.
FTX owes its creditors a staggering $11.2 billion. However, customers who file claims of $50,000 or less will receive approximately 118% of their claim amount, subject to approval by the bankruptcy court overseeing the case.
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This post was written by Angelo Smith
Video transcription
Another chapter in the final saga of the collapse.Crypto Exchange FTX, according to a court filing. The company claims that almost all of its customers will get their money back. The company says it owes creditors about $11.2 billion, and the plan says customers whose claims total $50,000 or less will receive about 118% of their allowable claim amount during the reorganization and has yet to be approved from the bankruptcy court here. It’s worth noting that, of course, when the company collapsed when FTX failed in 2022 at the end of 2022 Bitcoin at that price then was what, around $20,000? And as we take a look at BT C US D here today, I don’t know if we have the chart that we can throw at here on the screen, but we should still be at over $60,000.61 $62,000 if you want to round it home. So, all things considered, there’s kind of a strong AAA delta between what some of these people may have owned within FTX and what they will be owed as well as a result of this deal. Yes, that’s a really good point, Brad. Especially if you take a look at the behavior here of Bitcoin before this bankruptcy filing, right, because they had only sold off about 50% ahead here. So when you compare the time of the value there, what it was during that bankruptcy filing with what it was today. Seriously, a very, very wide gap. And it’s also about where this funding is going to come from almost 100% of it, or 99% of it, is coming from what they’ve raised from the company’s investment portfolio and within this ratio here, that anthropic that they hold there, uh, they sold shares there and that for almost $900 million this year. So, once again, many of the many of those who have been affected by this statement will receive 100, 100 and 18 cents. I guess on the dollar here, when it comes to when everything balances out. But again, as you were saying, this has to be approved. There are still a couple of processes that need to take place before this is finalized. But I think that doesn’t really remove the aspect of cryptocurrency uncertainty surrounding Bitcoin, right, and why so many people even remain on the sidelines when it comes to these types of investments. Yes, you can argue. FX is a very unique situation: the fraud, the allegations, everything that was confirmed there and found in court. However, when people think about investing in cryptocurrencies, I think there is a hesitation here with a lot of the investing public being a little skeptical and a little nervous about investing their money in cryptocurrencies due to everything that has happened over the years. last years. We’ve had some major profiles that have tried to emerge as Bitcoin or cryptocurrency barons instead of making sure that they were cementing the product service that they were providing to actually support the wellbeing of sentiment for the industry as a whole here and what do we mean by that ? I mean, you, look at FTX and Sam Beman Fried now that he has for FTX too. They also had to previously approve a deal with Blackly which is FTX’s largest creditor. There were constant missteps by the people who were considered barons. This dented the sentiment. And Homo points back to exactly why, uh, Satoshi, who wrote and and pioneered the Bitcoin white paper, is so anonymous because it shouldn’t have been annexed or could be created or destroyed by one figure and one figure alone here. And so that was the prevailing origin story for Bitcoin and cryptocurrency here, uh, broader question right now when there are so many large financial institutions involved and invested, is there going to be a greater effort to make sure that there are regulatory practices that actually consolidate the feeling from this point forward. Yes exactly. We were talking about a I talked about it with Anthony and Pagliano yesterday. And just in terms of what exactly it might look like here in the years to come