2024

Bitcoin

when

<p>FTX customers, after two long years of waiting, realize that this period is nothing compared to the ten years of their Mt. Gox counterparts. Yet, the hope of recovering 100% of their assets has collapsed, leaving a bitter taste. The latest amendment to the repayment plan announces a distribution ranging from 10% to 25% for FTX crypto holders, a major blow for affected traders.</p> 
<h2 id="h-ftx-surprises-its-creditors-with-minimal-repayment">FTX surprises its creditors with minimal repayment</h2> 
<p>It was said that <a href="https://www.cointribune.com/ftx-le-remboursement-des-clients-se-fera-a-moins-de-18-000-le-bitcoin/">FTX would reimburse its clients in bitcoin at prices below $18,000</a>. But the surprise was total for FTX creditors when <strong>the distribution of funds was changed to their detriment</strong>. Initially, the expectation of a full refund seemed realistic, but the new plan only provides for <strong>10% to 25% restitution of the lost assets</strong>.</p>
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<p>Even more surprising, <strong>$230 million</strong> from government seizures will be <strong>allocated to shareholders</strong>, a situation which should, according to usual bankruptcy rules, prioritize the creditors.</p> 
<p>As stated by <a href="https://x.com/sunil_trades/status/1839962286636601404" target="_blank" rel="noreferrer noopener">Sunil Kavuri</a>, activist and FTX creditor, “<em>FTX is transferring 18% of the funds from DOJ seizures to FTX shareholders</em>“, a decision that has caused a wave of discontent among crypto holders.</p> 
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     <p lang="en" dir="ltr">FTX is transferring 18% of DOJ forfeiture funds up to $230m to FTX equity holders (Plan supplement)<br><br>FTX crypto holders are getting 10% to 25% of their crypto back <a href="https://t.co/3f6BePpoNU">pic.twitter.com/3f6BePpoNU</a></p>— Sunil (FTX Creditor Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1839962286636601404?ref_src=twsrc%5Etfw">September 28, 2024</a>
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  With the modifications to FTX customer repayments
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<p>Creditors feel <strong>betrayed</strong>, and some have not hesitated to express their frustration on social networks. <a href="https://x.com/historian_ftx/status/1840001141070872781" target="_blank" rel="noreferrer noopener">One of them</a> expressed it this way:</p> 
<p>“<em>They quietly slipped this provision into the plan after the vote, it’s disgusting</em>“.</p> 
<p><strong>Tensions continue to rise</strong> as investors understand that their recovery hopes are much more limited than initially promised.</p> 
<ul> 
 <li>$230 million redistributed to shareholders;</li> 
 <li>Only 10% to 25% for crypto creditors;</li> 
 <li>The price of Bitcoin at the time of the filing was $16,000.</li> 
</ul> 
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<h2 id="h-crypto-in-turmoil-ftt-surges-despite-tensions">Crypto in turmoil: FTT surges despite tensions</h2> 
<p>While the FTX case ruffles feathers, another surprising phenomenon has shaken the crypto market: <strong>the sudden surge of FTT,</strong> the native crypto of the platform. <strong>In 24 hours, it skyrocketed by 60%,</strong> with trading volume rising by 3734%.</p> 
<p>This unexpected rebound is all the more troubling as <strong>FTT had plunged by more than 90% after the revelations of FTX’s fraudulent activities</strong> and the company’s bankruptcy in 2022.</p>  
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  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:FTTUSDT","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script> 
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<p>This spectacular rise leaves many market watchers perplexed, especially as <strong>FTT no longer has any intrinsic value</strong>. For traders, this turnaround serves as a reminder that the altcoin market remains highly speculative, and this explosion seems more like chance than any renewed confidence in the company.</p>
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<p>“<em>We are witnessing a kind of frenzy that corresponds to nothing concrete</em>“, explain some analysts.</p> 
<p>FTX creditors see no benefit in this surge, still stuck waiting to recover a fraction of their funds.</p> 
<p>Thus, the <a href="https://www.cointribune.com/en/ftx-to-redistribute-16-billion-a-bullish-pressure-on-bitcoin-and-solana-is-building-up/" target="_blank" rel="noreferrer noopener">redistribution of $16 billion</a> by FTX is likely to cause upward pressure on influential cryptocurrencies like Bitcoin and Solana, redefining market dynamics.</p>

Crypto: Why Won’t FTX Clients Be Reimbursed 100%?

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