2024

Refund

Bitcoin

<h4 style="text-align: left;"><strong>CNBC <a href="https://www.cnbc.com/2024/05/08/ftx-bankruptcy-most-customers-of-crypto-firm-will-get-all-money-back.html?src=wgna" target="_blank" rel="noopener">reports</a> that FTX plans to refund nearly all users impacted by last year’s financial crisis.</strong></h4> 
<p>This news comes as a relief to many who feared their investments were lost forever. Let’s discover more about this news from FTX.</p> 
<h5><strong>FTX Prepares to Repay Majority of Affected Users</strong></h5> 
<p>The exchange has reported that it owes approximately $11.2 billion to its creditors. However, it has also revealed that it currently possesses between $14.5 billion and $16.4 billion in assets available for distribution. This substantial amount exceeds the debts FTX has acknowledged, positioning the company to meet its obligations. Additionally, it may allow FTX to repay some customers more than their initial claims.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">FTX nominal claims of $12bn. Recoveries will be ~$15bn. Claims initially traded in secondary market at ~15 cents/$, per <a href="https://twitter.com/VladimirVjel?ref_src=twsrc%5Etfw">@VladimirVjel</a> data. </p> 
 <p>Gross trough-to-peak gains will be ~$13bn. FTX will be of the greatest trades in distressed market ever:</p> 
 <p> <a href="https://t.co/4rE2csJygd">https://t.co/4rE2csJygd</a> <a href="https://t.co/CX78qnJqih">pic.twitter.com/CX78qnJqih</a></p> 
 <p>— Sujeet Indap (@sindap) <a href="https://twitter.com/sindap/status/1788544727928668317?ref_src=twsrc%5Etfw">May 9, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>Under the proposed reorganization plan, FTX has outlined specific repayment details that indicate an over 100% repayment rate for certain groups of creditors. Specifically, customers with claims of $50,000 or less are set to receive 118% of their claim amount. Furthermore, the plan stipulates that 98% of all creditors will be able to access this repayment scheme. If approved, this plan would significantly relieve most affected users, whose funds have been frozen since the platform’s collapse.</p> 
<p>The ability to amass such a significant pool of funds for repayment stems from the sale of assets and venture investments made by FTX and Alameda Research, the two entities primarily involved in the financial turmoil. These sales and investments have evidently been fruitful, allowing FTX to propose a recovery plan that not only returns the principal amounts but, in some cases, provides an additional financial buffer to its creditors.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">FTX Plan Takeaways</p> 
 <p>You've likely heard claims below $50k get 118%. </p> 
 <p>Claims over $50k get 127% to 142% over time. </p> 
 <p>Now that we have that out of the way, let's talk about the hidden pitfalls in the plan.</p> 
 <p>Below is what I don't like about the plan.<br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/1kOwYVPclj">pic.twitter.com/1kOwYVPclj</a></p> 
 <p>— Nicholas Hall (@nicholashall) <a href="https://twitter.com/nicholashall/status/1788096287432175734?ref_src=twsrc%5Etfw">May 8, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>However, it is important to note that while FTX has prepared this plan, it still requires approval from a bankruptcy court. This upcoming court decision is critical as it will determine whether the proposed repayment structure can be implemented as designed.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/ftx-set-to-fully-refund-most-customers-post-collapse/">FTX Set to Fully Refund Most Customers Post-Collapse</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

FTX Set to Fully Refund Most Customers Post-Collapse

Altcoin Buzz

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