FTX Clients Are Getting Robbed Twice… Here’s Why!
Recent discussions around FTX refunds have sparked optimism, but many are missing a critical point that has left clients deeply frustrated.
What Happened?
FTX and Sam Bankman-Fried gambled away $12 billion of client funds through Alameda Research, leading to massive losses and a shattered trust in the crypto industry. Now, as refunds are being offered, clients face another setback.
The Refund Catch
FTX is refunding clients based on bear market prices—when BTC was at $16K, ETH at $1.2K, and SOL at $15. With BTC now over $62K, clients are receiving payouts calculated at these significantly lower valuations. This essentially means they’ll see only 10-25% of their original funds returned.
The Inequity
While clients are getting shortchanged, FTX shareholders are set to receive a hefty $230 million payout. This disparity arises from the "dollarization of balance sheet" in bankruptcy proceedings, which locks in the value at the time of filing, leaving clients with diminished recovery amounts.
TL;DR:
FTX clients are facing a double blow: 1️⃣ Their funds were gambled away by SBF. 2️⃣ They’re being refunded at outdated bear market prices.
This situation highlights the profound inequities in the aftermath of the FTX collapse.
