LIVE$SOL Solana NFTs Restored for FTX Claimants, FTT Token Holders Left Empty-Handed 🧐
At first I was a bit confused after I heard this news. Even here at Square, I saw a few people posting that FTX customers are getting their money back. But the reality turned out to be a bit different.
📢 FTX’s bankruptcy estate announced Tuesday that creditors and customers are likely to receive between $14.5 billion to $16.3 billion in total compensation—but that doesn’t include payouts for holders of FTX’s ill-fated FTT token.
Around 98% of FTX creditors with allowed claims less than $50,000 will also receive 118% of what they're owed if the plan receives court approval. Based on the USD value of crypto prices when FTX buckled in 2022, the payment represents a little interest on top of funds customers lost 18 months ago, when crypto prices were broadly much lower than they are now.
Creditors and customers who lost FTT in FTX’s collapse were previously set to receive cash payments based on their holdings, according to an FTX reorganization plan filed last December. The plan also stipulates that NFT-related claims would see their corresponding JPEGs returned.
🎯 After Changpeng Zhao, founder and then-CEO of Binance, moved to sell the exchange’s FTT holdings, the token nosedived, sparking a flood of investors withdrawing cash from FTX. Failing to process withdrawals, that eventually forced FTX to admit it didn’t hold 1:1 reserves of customer assets.
