New Startup Emerges to Assist FTX Customers
A number of individuals who were affected by the collapse of FTX in 2022 believed that they had lost their funds. Louis d’Origny, for instance, expressed concern about the possibility of recovering his money after the cryptocurrency exchange went bankrupt.
However, in the months following the collapse, a group led by Ramnik Arora, FTX’s former head of product, and d’Origny transformed the unfortunate situation into an investment opportunity. D’Origny revealed that he purchased FTX bankruptcy claims from other affected customers during this period.
With these FTX claims in hand, they launched four investments with the goal of recovering up to $31 million. This initiative eventually led to the creation of FTX Creditors, a platform that facilitated the purchase of $60 million worth of FTX claims. Arora, who played a significant role in FTX’s operations as head of product, is now a key member of the FTX Creditors team.
Arora was responsible for overseeing product development and participating in investment ventures at FTX. It has been reported that many of these investments were made using misappropriated customer deposits. Within the FTX Creditors team, Arora is primarily involved in engineering.
FTX Creditors to Receive 25% to 30% of Their Claims
FTX Creditors primarily target claimants who had less than $100,000 in the crypto exchange before its collapse.
Based on estimates, each creditor is expected to recover approximately 25-30% of their funds from the bankrupt exchange. The average cost for claims purchased through FTX Creditors’ third fund is 15% of the owed amount.
D’Origny emphasized the need for a fast, easy, and transparent process for creditors, as the market for them was previously opaque and filled with risks and individuals profiting heavily. FTX Creditors aims to address these issues.
The Bloomberg report also highlights d’Origny’s role in opposing the proposed restart of FTX.
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