FTX Clients Are Getting Double-Crossed…

Here’s Why!

Recently, there’s been a lot of buzz about FTX refunds starting and how this could be a positive sign for crypto. While that’s true, many are missing a critical detail.

This detail explains why FTX clients are feeling even more frustrated. Let’s break it down👇

First, FTX and SBF lost $12 billion of client funds through risky bets at Alameda Research. The aftermath? People lost their savings, investments, and trust in the crypto space. But now, the situation has worsened.

FTX is issuing refunds, but here’s the kicker: they’re using bear market prices — from when BTC was at $16K, ETH at $1.2K, and SOL at $15. Fast forward to today, BTC is over $62K, yet clients are getting refunded at rock-bottom prices. It's a second robbery in plain sight.

What’s the impact?

Clients will only get back 10-25% of their funds, based on the low bear market prices — not the current valuations. Meanwhile, FTX shareholders are walking away with a hefty $230 million payout.

Why is this happening?

It’s all due to the “dollarization of balance sheet” in bankruptcy cases. When a company goes under, courts freeze the balance sheet at a certain dollar value, determining payouts from that. Unfortunately for FTX clients, the balance sheet was locked at the market’s lowest point, leaving them with pennies on the dollar.

In short: FTX clients are getting hit twice:

1️⃣ SBF gambled away their funds.

2️⃣ Now, they’re being refunded at the lowest possible prices.