2024

Bitcoin

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 The <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> debtors in possession have announced a new reorganization plan that would result in nearly every single creditor getting <a rel="noopener noreferrer nofollow" title="recovery" href="https://thebittimes.com/tag/recovery.html">recovery</a> of their full claim amount plus additional interest, according to court documents.&nbsp;
 Additionally, the plan would resolve claims from the Internal Revenue Service and the Commodity Futures Trading Commission, and potentially allow for restitution from the Department of Justice fines to be paid to creditors.&nbsp;
 The press release issued by the debtors in possession highlights that most of this <a rel="noopener noreferrer nofollow" title="recovery" href="https://thebittimes.com/tag/recovery.html">recovery</a> has come from ‘proprietary investments held by the Alameda or <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> ventures businesses.’ It’s the sale of those assets that principally drove the <a rel="noopener noreferrer nofollow" title="recovery" href="https://thebittimes.com/tag/recovery.html">recovery</a>, as the press release highlights that <a rel="noopener noreferrer nofollow" title="FTX" href="https://thebittimes.com/tag/ftx.html">FTX</a> held ‘only 0.1% of the <a rel="noopener noreferrer nofollow" title="Bitcoin" href="https://thebittimes.com/tag/bitcoin.html">Bitcoin</a> and only 1.2% of the ethereum’ that it was meant to at bankruptcy.&nbsp;
 Some of these investments have included Alameda’s investment in artificial intelligence firm Anthropic as well as some other investments that have accrued in value.
 However, some FTX creditors are less than satisfied with this resolution to the bankruptcy process, feeling entitled to more of the appreciation that their cryptocurrency assets might have benefited from had FTX not been forced to shut down and close withdrawals.&nbsp;
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 0% of FTX creditors agree that receiving $16800 for your bitcoin is fully compensated. I understand why the bankruptcy process needs to work this way but let's not pretend victims are getting their money back or that FTX wasn't as awful as it was. https://t.co/odVp4rT7hP— Mike Belshe (@mikebelshe) May 8, 2024
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 Read more: Anthropic gamble could save FTX customers from total ruin
 The initial claim amounts were fixed in dollars when FTX declared bankruptcy in November 2022. At the time, crypto was far less valuable, with bitcoin worth less than $20,000.
 This means that even with the additional interest the claimants will receive, it will still be substantially less than it might have been had financial criminal Sam Bankman-Fried not misappropriated billions of dollars from the exchange.
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/when-is-full-recovery-not-a-full-recovery-ftx-tbt87805.html">https://thebittimes.com/when-is-full-recovery-not-a-full-recovery-ftx-tbt87805.html</a>

When is full recovery not a full recovery? FTX

TheBitTimes

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