The FTX collapse was bad... but it’s about to get worse. Creditors are being left with scraps.

Let's break down the brutal truth behind the numbers.

The collapse of FTX left a massive dent in the crypto space, wiping out over $2 billion in customer value. Now, creditors are set to receive just 10-25% of their funds back.

Sunil (FTX Creditor Champion)

So why are people outraged?

The reimbursements will be based on crypto prices at the time of the bankruptcy filing.

This means $BTC BTC holders, for example, will get reimbursed at $16K per #BTC —not today’s prices. The same is the case for cryptocurrencies like $ETH , $SOL , others.

This move sparked frustration among creditors. Many users lost their life savings and went through mental distress. And sadly, it’s not just about the money—it’s about broken trust in the crypto space.

On Sept. 6, 2024, #FTX managed to secure $600 million worth of Robinhood shares to pay off creditors. But with so many hurdles, it’s clear this issue is far from over.

US SEC might also object to FTX's plan to reimburse creditors with #stablecoins. All these issues are growing a sense of injustice among users. Many users wondering why the legal system isn’t offering better protection for investors.

The lesson from the FTX case?

Trust and transparency are everything in the financial system, including crypto. When you’re investing in crypto, make sure you're aware of the risks involved.

Additionally, keep your crypto safe and diversify these crypto funds in different #exchanges and #wallets.  

#Bankruptcy #Bitcoin #CryptoNews #PersonalFinance #Web3