Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: ABCbits on May 09, 2024, 01:20:58 PM
-
FTX has billions more than needed to repay bankruptcy victims
Bankrupt cryptocurrency exchange FTX has amassed billions in extra money to fully repay its 2 million customers, marking a new twist in bankruptcy proceedings.
Cryptocurrency exchange FTX which went bankrupt in late 2022 has accumulated billions more than it needs to cover losses incurred during its collapse in November 2022. In a commentary to Bloomberg, FTX CEO John Ray called the milestone an “unbelievable result,” signaling the exchange’s readiness to fully reimburse its over 2 million customers... Read more here (https://crypto.news/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims/).
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
-
If this is the case, then creditors are expected to receive a 100% refund of their lost coins, the article states that ftx are going to make ~ 16.3 billion from the sale of their assets, meanwhile creditors are owed ~ 11 billion. They have not stated when refund would begin, but this must be good news for ftx's creditors, yes?
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
It is really unexpected, but are investors expected to regain trust in this exchange after they get reimbursed? I doubt.
There is no second chance to make a good first impression.
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
It is really unexpected, but are investors expected to regain trust in this exchange after they get reimbursed? I doubt.
There is no second chance to make a good first impression.
Most of those who lost their money will not regain the trust of the project anymore, but I still believe there are some stupid investors out there that will think "Oh, they gave us our money back, and everybody deserves a second chance. I will invest into them again." 100% sure of that. ;)
Those who experience losses on the project might not invest on it again, but newbies who just came in and invests into crypto and doesn't know what's the past of this project might invest on this (that if the project became popular again). Those who don't know what happened to this project might still invests on this one because "maybe" they find it promising, but for those who saw what happened (including me), I will never touch this project at all.
Like you, I also don't believe in second chances especially when you affected millions of people that lost billions of dollars. I guess it's just good that they will reimburse their money, and I hope that they will really do it and for me, they need to give their money back plus some compensation as well because of how traumatizing it is for the investors. I mean we know that some are greatly affected by what happened mentally.
-
It seems like the major source for this report is this article[1]. I can't read the full article but so far it shows that these "assets" they're referring to come from tokens, equity/shares on other firms, and more. I can see how Solana's rally helps them, albeit hard to believe they can earn billions solely from that. I guess we can only see the details on their next report if they make it public. The article also suggests that customers might earn more than their deposit amount, so that's good I guess. CMIIW.
[1] https://www.bloomberg.com/news/articles/2024-05-07/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
It is really unexpected, but are investors expected to regain trust in this exchange after they get reimbursed? I doubt.
There is no second chance to make a good first impression.
Most of those who lost their money will not regain the trust of the project anymore, but I still believe there are some stupid investors out there that will think "Oh, they gave us our money back, and everybody deserves a second chance. I will invest into them again." 100% sure of that. ;)
I'm not familiar with US regulation, but can a company which declare bankrupt decide to start it's business again? Anyway, i can see few people actually giving second chance rather than using different exchange with better history.
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
This is surely a very positive twist in the FTX collapse saga and one thing that can make the people who lost in there be smiling and can be looking forward to get their invested money back for good. At the same time, this can mean that FTX has now a good chance to survive and rebuild itself in the cryptocurrency exchange business without the chaotic and mismanagement of its founder, the famous and incarcerated Sam Bankman-Fried. This is a solid evidence of how big of a financial empire FTX was and how unfortunate that SBF became the agent of its rise and downfall. Under good hands - people who will eventually take over FTX and make it kicking and profitable again - this can go down as one of the most amazing and astonishing comeback story in the world of cryptocurrency - and for the sake of the people who got ensnared by FTX am hoping I could be right.
-
This is unexpected and it is a good news indeed. I believe investors and users of the FTX are very much happy and anticipating the refund of their lost/ stolen assets and funds.
I am curious to ask because the refund we are talking about here is running into billions of dollars and we all know what that means if an exchange should make a refund of such nature. I am just wondering what the refund policy would look like. Would they allow account holders make withdrawal immediately from the exchange because that is the next step every user of the exchange who lost their assets and money would do because they can not trust the exchange anymore as a result of their previous experience with the exchange.
Lastly how were they able to get such amount of money after the incidence with their boss carelessness. There are still things they need to tell their investors because I would have no other thought now than trying to figure how they were able to get such an amount of money to make refund to the users who lost their funds with them.
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
When the market enter bear market, the money that was calculated that was loss from FTX exit was almost $8B but with the way the market has revive and has grown close to the previous all time high, it the market doesn't collapse, they should be able to make back the losses for creditors, atleast pay back people their money.
However, there is a challenge, people who hold coins on FTX exchange would want to have an equivalent money in quantity of coins and not in the amounts it worth before the collapse but if I'm a victim of FTX, I will rather accept the amount than wait for the quantity. I will sell into usdt and buy back when the market fall later in the future.
-
When the market enter bear market, the money that was calculated that was loss from FTX exit was almost $8B but with the way the market has revive and has grown close to the previous all time high, it the market doesn't collapse, they should be able to make back the losses for creditors, atleast pay back people their money.
However, there is a challenge, people who hold coins on FTX exchange would want to have an equivalent money in quantity of coins and not in the amounts it worth before the collapse but if I'm a victim of FTX, I will rather accept the amount than wait for the quantity. I will sell into usdt and buy back when the market fall later in the future.
I imagine when they liquidate all that crypto, if they haven't already, it's going to cause a massive dip in the market price.
But anyway, I am pleasantly surprised at the outcome. I certainly was not expecting FTX to repay any of its victims, after we saw the long line of rug-pulls that happened in 2022.
-
I imagine when they liquidate all that crypto, if they haven't already, it's going to cause a massive dip in the market price.
If most of them are altcoins (as it seems to me), then even the billions worth of altcoins that will be dumped on the market will not affect the price of BTC too much. If I happen to keep some altcoins that are mentioned around FTX, I would seriously think about getting rid of them as soon as possible.
But anyway, I am pleasantly surprised at the outcome. I certainly was not expecting FTX to repay any of its victims, after we saw the long line of rug-pulls that happened in 2022.
I hope I'm wrong, but things like this move very slowly and it could be years before anyone gets any funds back. If the Mt.Gox case has been going on for about 10 years, can we expect the FTX disaster to be over in at least half that time?
-
It's unexpected good news, although i hope all of it actually goes to the FTX victim. After all, the victim gain some stress and spend decent time to fill report of their losses. Your opinion is greatly appreciated.
It is really unexpected, but are investors expected to regain trust in this exchange after they get reimbursed? I doubt.
There is no second chance to make a good first impression.
There's no chance for FTX to rebuild again after what happened, even if they return the funds of their investors and even include interest. I don't think these investors will come back to trust FTX again; they've caused a lot of miseries to their users and they also create distrust and disruption in the industry.
Investors have learned a lot from their experience from FTX and there will neve be another chance.
-
If this is the case, then creditors are expected to receive a 100% refund of their lost coins, the article states that ftx are going to make ~ 16.3 billion from the sale of their assets, meanwhile creditors are owed ~ 11 billion. They have not stated when refund would begin, but this must be good news for ftx's creditors, yes?
Many pounced on FTX's token FTT after seeing this news which led to a big pump in FTT on May 8. If FTX is able to do this then it will be really good news and they will regain public trust and turn around again. People had a lot of faith in FTX and very quickly this exchange gained a huge amount of users and became a competitor to Binance. Let's see if they can bounce back.
-
That's good news for FTX victims, they will be able to receive their funds, plus they will be receiving 112% of what they lose. I mean that's more than 2x of what they lost. That's good news for all investors and customers. I hope they will repay soon. What I am afraid is, that these customers of FTX will start to sell their profits as soon as they get their funds back and this might cause a dip or temporary downtrend in the market due to excessive selling.
I am amazed to see how FTX has gained that many billions just due to accumulating, I mean that's what the news said, they raised this much funds due to accumulating they have done till now. If they have done this accumulating for a long time, then why did they not make some statements before, like to calm down customers, or they did and I am unaware of that?
BTW will SBF be released now? I guess not, as it does not changes the situation he put the clients in, I guess his sentence might be reduced if he paid the funds back. Overall its a win win for the customers which sued SBF.
-
~ but this must be good news for ftx's creditors, yes?
There's no doubt about it. When collecting payments for what's owed to you, it's always good to get something than nothing. If creditors will be getting back 118% up to 142%, then that's certainly better.
The only caveat I would say here is it's a statement coming from FTX CEO and the word 'expected'. Some things don't always go according to plan and the actual proceeds might be less than their $16.3 Billion estimate.
-
There's no chance for FTX to rebuild again after what happened, even if they return the funds of their investors and even include interest. I don't think these investors will come back to trust FTX again; they've caused a lot of miseries to their users and they also create distrust and disruption in the industry.
Investors have learned a lot from their experience from FTX and there will neve be another chance.
It has been said officially
An FTX lawyer said during a Wednesday hearing that plans for a re-launch of the exchange won’t come to fruition.
https://www.theblock.co/post/275405/bankrupt-ftx-wont-be-restarting-but-former-customers-will-get-money-back-in-full
There's no doubt about it. When collecting payments for what's owed to you, it's always good to get something than nothing. If creditors will be getting back 118% up to 142%, then that's certainly better.
But if Bitcoin goes to 30k, then there is nothing of that 142% ???
I am quite suspicious when the debtor promises the possibility of even more than what is expected of him, while there is no question of the possible risk that there will be no return or possibly only a smaller percentage.
-
There's no chance for FTX to rebuild again after what happened, even if they return the funds of their investors and even include interest. I don't think these investors will come back to trust FTX again; they've caused a lot of miseries to their users and they also create distrust and disruption in the industry.
Investors have learned a lot from their experience from FTX and there will neve be another chance.
It has been said officially
An FTX lawyer said during a Wednesday hearing that plans for a re-launch of the exchange won’t come to fruition.
https://www.theblock.co/post/275405/bankrupt-ftx-wont-be-restarting-but-former-customers-will-get-money-back-in-full
So it seems that FTX has finally been staffed by grown-ups after the kids were left running around making a mess of the company before. :)
Not restarting operations at all is the correct decision. Where would they even find someone competent enough to do that for instance. The senior executives are either jailed or on trial right now.
These lawyers are pretty good. I wasn't expecting this kind of end result to come into fruitition.
-
If this is the case, then creditors are expected to receive a 100% refund of their lost coins, the article states that ftx are going to make ~ 16.3 billion from the sale of their assets, meanwhile creditors are owed ~ 11 billion. They have not stated when refund would begin, but this must be good news for ftx's creditors, yes?
Of course, this is good news for FTX creditors as they will finally be able to recover their lost funds on that ill-fated exchange that has caused so much damage to crypto users over the past years.
But I'm surprised where FTX got those $16.3 billion in assets from? I mean, after the collapse of the exchange and all these cases and accusations against it, how did FTX manage to collect such a huge amount? Are these assets clean and free of any legal issues?
-
These lawyers are pretty good. I wasn't expecting this kind of end result to come into fruitition.
Yeah, They are $2000 per hour good ;)
This is an analysis from June 21, '23, and then they had nearly 35,000 billable hours, around $200mil. How many FTX users could have been reimbursed from there?
“These proceedings appear on track to be very expensive by any measure,” said Stadler, citing costs that already amount to 2% of estate assets and 10% of reported cash, with 46 of the 242 attorneys assigned to the case charged over $2,000 an hour.
https://www.coindesk.com/policy/2023/06/21/ftxs-bankruptcy-fees-already-topped-200m-court-examiner-says/
-
There's no doubt about it. When collecting payments for what's owed to you, it's always good to get something than nothing. If creditors will be getting back 118% up to 142%, then that's certainly better.
But if Bitcoin goes to 30k, then there is nothing of that 142% ???
Since they will be paid in USD, it doesn't matter if it goes down to $30K. As I understand, the basis used to determine the dollar value of BTC and other crypto was from the time the bankruptcy petition was filed. That's Nov. 11, 2022 (from an article) and BTC was more or less $16K.
Anyway, I read that a group of creditors were not happy with the proposed reimbursement plan and they want to dispute that. Honestly, I would be disappointed as well but, again, better than nothing.
-
Honestly, I would be disappointed as well but, again, better than nothing.
If I lose a lot of money, I'll try to get more out of this plan. There's no way I can just say "better than nothing" if I lose hundreds of dollars or even millions of dollars. Maybe that's the right angle to take if you're a customer so you don't get tricked or abused by FTX even further.
how did FTX manage to collect such a huge amount? Are these assets clean and free of any legal issues?
IIRC I made a post about this one a while back. It comes from crypto tokens like Solana, equity shares on other firms, and so on based on a Bloomberg article that I read. Not sure how accurate that is as of now. CMIIW.