FTX victims expressed unhappiness with the defunct exchange’s bankruptcy proceedings, claiming the estate overseeing the proceedings is no different than “the enterprise run by SBF (Sam Bankman-Fried). Their concern arises from the compensation FTX’s bankruptcy estate owes, which it may not try to meet adequately according to what the investors feel they rightfully deserve. In a court filing, they stated that digital assets have grown tremendously since FTX went bust in the 2022 bear market, and compensations are being calculated based on asset prices from that period. 98% of investors will expectedly receive 118% of the funds they left on FTX. Nevertheless, certain investors are anxious about never seeing their money back. Attorneys representing this group of defrauded investors
Topics:
Suraj Manohar considers the following as important: Exchange News, News
This could be interesting, too:
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
Chimamanda U. Martha writes Crypto Exchange ADEX Teams Up with Unizen to Enhance Trading Experience for Users
FTX victims expressed unhappiness with the defunct exchange’s bankruptcy proceedings, claiming the estate overseeing the proceedings is no different than “the enterprise run by SBF (Sam Bankman-Fried). Their concern arises from the compensation FTX’s bankruptcy estate owes, which it may not try to meet adequately according to what the investors feel they rightfully deserve.
In a court filing, they stated that digital assets have grown tremendously since FTX went bust in the 2022 bear market, and compensations are being calculated based on asset prices from that period. 98% of investors will expectedly receive 118% of the funds they left on FTX. Nevertheless, certain investors are anxious about never seeing their money back.
Attorneys representing this group of defrauded investors mentioned, “FTX customers [are] feeling ‘aggrieved and robbed,’ many of whom view the bankruptcy process as a ‘second act of theft.’” FTX creditors remain skeptical about the amounts pledged to them in dollar value, considering the losses they will accumulate due to crypto prices rising tremendously over the past few months.
SOL has skyrocketed nine times since the FTX fiasco, and BTC quadrupled since investors formally petitioned for their lost funds. The filing read, “If not for SBF’s crimes for which he was convicted—i.e., the theft and misuse of customer assets—the customers would have today owned their crypto investments.” And by owning their investments, they would have realized the gains the market has offered since FTX’s bankruptcy in 2022. SBF—Sam Bankman Fried—was responsible for squandering at least $8 billion. He was ordered to shell out $11 billion as penalties during his conviction, alongside serving 25 years in prison for fraud.
The file also stated how the exchange’s bankruptcy estate prioritizes various investors over others, leaving a few investors in the dark. FTT token investors are at the bottom of the priority list established by the bankruptcy estate and are reasonably worried about never uniting with their funds.
“It is unlikely that holders of that token will receive compensation from the estate,” the court filing said.
Image by u_ukgjgf0syq from Pixabay