Management at bankrupt FTX says its clients will get more than 100% of their money back.
Why such generosity? Let us remind you that the amount of the value of the assets at the time of the collapse of the crypto exchange will be returned. At the time of the FTX collapse, the BTC rate was around $20,000. The altcoin rate is appropriate. Clients stuck in the exchange have already missed a year and a half of the bull run and have huge lost profits. But in the end they will only receive the cash equivalent of what was lost in November 2022.
According to the publication,#FTXexpects that the total value of property to be distributed among creditors will range from $14.5 to $16.3 billion. This amount includes assets under the control of the Chapter 11 debtors as well as assets under the control of the joint official liquidators of FTX Digital Markets, Ltd. (Bahamas), the Bahamas Securities Commission, the joint official liquidators of FTX Australia, the US Department of Justice and dozens of individuals who "cooperated in recovery efforts."
At the same time, the debt to clients at the time of the stock exchange collapse was $11 billion. 98% of victims, according to the new restructuring plan, will be entitled to compensation in the amount of 118%. The remaining 2% of victims will receive compensation in full of their funds, as well as 9% above that.
The new compensation plan will take effect 60 days after court approval (if approved).#FTTshowed another impulse growth on this news, this time by +40%. But I have already corrected more than half of the movement. The prospects for FTT are still vague, no one is talking about ironclad plans to restart the exchange and, moreover, bring FTT back to life and cover the huge imbalance of the November 2022 fall.
