LIVE๐ธFTX Losing $1 Million a Day: Check Why and How
๐ The Fallout of FTX's Bankruptcy: A Prolonged Bearish Trend
In the aftermath of FTX's bankruptcy, the ongoing saga is posing significant challenges for creditors. Here's the latest:
๐ Evaluation at Pre-Crash Prices:
FTX's rescue plan proposes valuing creditors' claims based on November 11, 2022, crypto prices. However, the crypto market has since seen a surge, leaving creditors potentially facing substantial losses.
๐ Impact on Cryptocurrency Values:
Bitcoin, valued at $17,500 on November 11, 2022, has more than doubled since, reaching $40,965. Ethereum followed suit, rising from $1,284 to $2,214. Creditors could face losses of $24,000 per BTC and nearly $1,000 per ETH. Some creditors argue this overlooks FTX's Terms of Service, asserting that digital assets belong to users.
๐ผ Legal Expenses Mounting:
FTX's bankruptcy proceedings have come at a significant cost. Over the three months leading to October 31, expenses on legal and advisory services amounted to a staggering $53,000 per hour. Key contributors to these costs include Alvarez and Marshall, billing $35.8 million, and Sullivan & Cromwell, invoicing $31.8 million.
๐ก Creditor Voting and Uncertain Repayments:
Before finalization, specific creditor classes will have the opportunity to vote on the restructuring plan. One major concern is whether compensation to FTX's victims will be in cash or cryptocurrency, adding another layer of uncertainty to an already complex situation.
๐ผ Anonymous Creditor Insights:
An anonymous FTX creditor revealed on December 17 that the total legal fees incurred since the start of FTX's bankruptcy case reached approximately $350 million.
๐จ Stay Informed, Stay Prepared: Follow The Blockopedia for Real-time Updates!
