$16B from FTX to its creditors

[TomPluz]

Somehow, it doesn't seem to me that it is realistic to expect that all those billions will be paid out at once, it will probably be a process that will last for months.

That would probably be like that considering the amount FTX team is going to distribute and I think this can be good news to the market as things are coming out gradually. I am hoping that a big chunk of the money would be reinvested into the cryptocurrency industry for good. All in all, this is actually a very good news as justice is now starting to be given to the victims of the big FTX fiasco. Whether this can create upward movements in the industry or a short-term dip can happen...those are remain to be seen. I am more inclined to think that this can be another push for the Uptober idea.

[Lucius]

I think it will not be positive for crypto market because most of the creditors will dump their assets at the market rate and that will cause huge dips in the market.
~snip~

Haven't we already concluded that the payouts should be in fiat and not in crypto? If the majority of cryptocurrencies have already been liquidated and if the payouts will be relatively fast, maybe this can have some kind of positive impact on the crypto market - otherwise, you shouldn't expect miracles because many will use the money for other purposes.

Coins from Mt.Gox were valued at over $9 billion, so even though it was a combination of fiat, BTC and BCH payments, I did not notice that there were any serious disturbances in the market.

[rdluffy]

If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should? I don't know about all the other altcoins, but to me it seems far from a fair deal - although some will say that it's better to get something than nothing.

I voted against it when I could. But the majority chose to receive the money in this way anyway

Unfortunately, I even agree that it's better to get paid under these conditions, than to take a few more years and maybe not get paid at all, since the longer it takes, the more expensive the whole process of lawyers, companies, justice etc. becomes
At least we can receive and try another opportunities with the money

[Lucius]

I voted against it when I could. But the majority chose to receive the money in this way anyway
~snip~

I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.

[rdluffy]

I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.

I'll try to summarize a bit 

• The process has been going on for a few months now
• We had to recognize how much we had in FTX, do the KYC, access our account there and do 2FA
• We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
  If you had 1 BTC and it was worth 30k, you'd get 30k
  
• Then they informed us that they had recovered even more than they owed their clients, so they were going to pay an extra 10% to each client.
  Some larger clients filed lawsuits, obviously to receive cryptos, not fiat
  
  
• A few weeks ago there was a document for all customers to fill out, and in it you could vote on whether you would prefer to receive it as agreed, or whether you wanted it in cryptos.
  The vast majority voted to receive the agreed amount, as it is likely to be much quicker and more guaranteed than trying to get the cryptos back.

[SamReomo]

Haven't we already concluded that the payouts should be in fiat and not in crypto? If the majority of cryptocurrencies have already been liquidated and if the payouts will be relatively fast, maybe this can have some kind of positive impact on the crypto market - otherwise, you shouldn't expect miracles because many will use the money for other purposes.

If those have been liquidated then it won't have any adverse impact on the market but if those haven't been liquidated then those will have to be liquidated first before they will be able to pay creditors with fiat.

I'm not sure what's going to happen but there's high chance that those who get their money may use it for something else as most of that got dishearten when FTX collapsed and they might consider crypto as a bad investment after that incident.

[vegasus]

If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should?

I voted against it when I could. But the majority chose to receive the money in this way anyway

Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.

But as you said, people may not want to think complicatedly anymore, as long as their money comes back, they are already very relieved. Because after all, they must be very sick, leaving the money on the exchange and not being able to take it even when the average coin price has increased drastically. Not to mention, when you want to claim it also has to go through a complicated process. That's why this is actually a pity for the holders there. But once again, they may not have any other better choice, the important thing is that their assets are back, that might be enough rather than demanding high but in the end not getting it at all.

[rdluffy]

I'm not sure what's going to happen but there's high chance that those who get their money may use it for something else as most of that got dishearten when FTX collapsed and they might consider crypto as a bad investment after that incident.

Of course there are people who will never get back to crypto, unfortunately
But at least in my case, my plan is to get 50% and leave in fiat, and 50% to buy BTC and leave in a cold wallet to hold for some years

Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.

Yes, it's very unfair, I agree and I've been angry enough, but if you look at it coldly, it's better to take what you've got and move on with new opportunities

[Lucius]

I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.[/size]

I'll try to summarize a bit 

• The process has been going on for a few months now
• We had to recognize how much we had in FTX, do the KYC, access our account there and do 2FA
• We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
  If you had 1 BTC and it was worth 30k, you'd get 30k
  
• Then they informed us that they had recovered even more than they owed their clients, so they were going to pay an extra 10% to each client.
  Some larger clients filed lawsuits, obviously to receive cryptos, not fiat
  
  
• A few weeks ago there was a document for all customers to fill out, and in it you could vote on whether you would prefer to receive it as agreed, or whether you wanted it in cryptos.
  The vast majority voted to receive the agreed amount, as it is likely to be much quicker and more guaranteed than trying to get the cryptos back.

Thanks for the additional clarifications, now some things are clearer - the majority chose a quick solution, although for some it means that they will receive much less than they might have received if they had chosen payment in cryptocurrencies that they had on CEX.


The new news is that Bankman's girlfriend/lover has been sentenced to 2 years in prison and has to forfeit as much as $11 billion - I don't know if it's the money we're talking about here or if there's more money out there somewhere?

Caroline Ellison, who is also the ex-girlfriend of former FTX CEO Sam Bankman Fried, pled guilty in December 2022.
Ellison told the court in March during Bankman-Fried’s criminal trial that he directed her to commit the crimes that led to the downfall of FTX. Ellison will also have to forfeit about $11 billion and can serve her sentence at a "minimum- security facility,"

+1

[36B]

If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should?

I voted against it when I could. But the majority chose to receive the money in this way anyway

Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.

But as you said, people may not want to think complicatedly anymore, as long as their money comes back, they are already very relieved. Because after all, they must be very sick, leaving the money on the exchange and not being able to take it even when the average coin price has increased drastically. Not to mention, when you want to claim it also has to go through a complicated process. That's why this is actually a pity for the holders there. But once again, they may not have any other better choice, the important thing is that their assets are back, that might be enough rather than demanding high but in the end not getting it at all.

This pain is very hurt granted by asset holders for instance when they notice that the price of the coin is rising they cannot access their funds. I would like to say that people prefer to take what is less satisfying in the process because there is more uncertainty if they go to court to sue hoping to get more but get nothing at all. It has indeed become a very tight decision for many, and it is rather sad, that such a time has come.

[examplens]

I hate that I was rightly sceptical, but the whole thing is going worse than the most pessimistic predictions.
FTX Creditors Could Receive 10% to 25% of Their Crypto Back -Link

• We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
  If you had 1 BTC and it was worth 30k, you'd get 30k
  

Even worse, Bitcoin’s price was $16,000 at the time of the FTX crash.

[Stompix]

The new news is that Bankman's girlfriend/lover has been sentenced to 2 years in prison and has to forfeit as much as $11 billion - I don't know if it's the money we're talking about here or if there's more money out there somewhere?

Caroline Ellison, who is also the ex-girlfriend of former FTX CEO Sam Bankman Fried, pled guilty in December 2022.
Ellison told the court in March during Bankman-Fried’s criminal trial that he directed her to commit the crimes that led to the downfall of FTX. Ellison will also have to forfeit about $11 billion and can serve her sentence at a "minimum- security facility,"

+1

No, it's money the US justice system will take from you if it's anyhow related to this case or you manage to hit the jackpot again.

Let's assume you go bankrupt, the judge will look at the damage you caused and set a sum, usually higher than what you ever had making sure so that you're never able to take advantage of any hidden money, Sam got 11 billion in forfeiture, Ellison 13, both judges know they will never be able to pay this but the sums are related to the damages caused, much like those 7 life sentences, nobody is going to spend 600 years in prison.

So no, there is no extra money there, and of course not 24 billion!