FTX Creditors to be Repaid with Interest
FTX customers who lost their money during the collapse of the exchange will get paid back with interest, but missed out on a ….
The victims of this giant bankruptcy are getting paid back. I remember talking to a hedge fund manager who is buying distressed claims that like $0.20 on the dollar. And my only thought was, why would you even buy that?
But now he looks pretty smart. He looks very smart. There are a lot of investors and even retail customers who bought up claims. Pretty soon after FTX filed bankruptcy in November 2022. They were trading around $0.10 on the dollar. You were saying $0.20 on the dollar. And now the expectation is that most customers will get 118% back. So above par, which is pretty incredible. But even though it’s above par, one thing that I’m not understanding is why it’s based on November 2022 pricing.
Why couldn’t they do it more recently? So why the new CEO of RTX and the advisors have said is that is really just a requirement of the bankruptcy law and how Chapter 11 works. And we’ve seen similar pricing done in the other crypto bankruptcies, not just FTX, but the the the theory behind it is you’re locking in a price at the time of the bankruptcy. So, yes, it’s a problem if you have a volatile asset that goes up substantially in value, which is what we’ve seen with Bitcoin and other tokens since the bankruptcy. But it also protects, you know, this is bankruptcy. It’s not just about crypto, it protects downside. So if you had a claim when a company filed bankruptcy, it protects you in case the value of that claim deteriorates since the bankruptcy. So really, why is this happening? It’s a function of what bankruptcy and how bankruptcy works. And that has been a conflict with how crypto works. And we’ve seen that over and over again. This is just kind of the latest iteration of it. I can understand with, you know, the price of Bitcoin going from 15 grand at the low point where where they want it, where the bankruptcy creditors want to want a market to 62,000, 64,000, 65,000. Get that that’s recovered. What are the other assets that FTC’s has had or has that have made it possible to pay back the creditors?
Well, they have a ton of Solana, and that’s had a similarly enormous increase in price since the bankruptcy started. They also had a large stake in Anthropic, the AI startup, and they’ve sold a substantial amount of the shares they had in that. So those are two big sources of recovery. They’ve also filed a number of lawsuits to recover money that FTX, while it was run by Sam Bankman-fried, was paying out to different, you know, other companies, different nonprofit organizations. And a lot of that litigation is outstanding. So it’s a combination of litigation. Anthropic is a big, you know, big component and holdings and so on up another big component. But yeah, those are the three kind of. Biggest.
Repayment of FTX Creditors
FTX customers who lost their money during the collapse of the exchange will get paid back with interest, but missed out on a …
The victims of this giant bankruptcy are getting paid back. I remember talking to a hedge fund manager who is buying distressed claims that like $0.20 on the dollar. And my only thought was, why would you even buy that? But now he looks pretty smart. He looks very smart. There are a lot of investors and even retail customers who bought up claims. Pretty soon after FTX filed bankruptcy in November 2022. They were trading around $0.10 on the dollar. You were saying $0.20 on the dollar. And now the expectation is that most customers will get 118% back. So above par, which is pretty incredible. But even though it’s above par, one thing that I’m not understanding is why it’s based on November 2022 pricing. Why couldn’t they do it more recently? So why the new CEO of RTX and the advisors have said is that is really just a requirement of the bankruptcy law and how Chapter 11 works. And we’ve seen similar pricing done in the other crypto bankruptcies, not just FTX, but the the the theory behind it is you’re locking in a price at the time of the bankruptcy. So, yes, it’s a problem if you have a volatile asset that goes up substantially in value, which is what we’ve seen with Bitcoin and other tokens since the bankruptcy. But it also protects, you know, this is bankruptcy. It’s not just about crypto, it protects downside. So if you had a claim when a company filed bankruptcy, it protects you in case the value of that claim deteriorates since the bankruptcy. So really, why is this happening? It’s a function of what bankruptcy and how bankruptcy works. And that has been a conflict with how crypto works. And we’ve seen that over and over again. This is just kind of the latest iteration of it. I can understand with, you know, the price of Bitcoin going from 15 grand at the low point where where they want it, where the bankruptcy creditors want to want a market to 62,000, 64,000, 65,000. Get that that’s recovered. What are the other assets that FTC’s has had or has that have made it possible to pay back the creditors?
Well, they have a ton of Solana, and that’s had a similarly enormous increase in price since the bankruptcy started. They also had a large stake in Anthropic, the AI startup, and they’ve sold a substantial amount of the shares they had in that. So those are two big sources of recovery. They’ve also filed a number of lawsuits to recover money that FTX, while it was run by Sam Bankman-fried, was paying out to different, you know, other companies, different nonprofit organizations. And a lot of that litigation is outstanding. So it’s a combination of litigation. Anthropic is a big, you know, big component and holdings and so on up another big component. But yeah, those are the three kind of. Biggest.
Hot Take: FTX Creditors Await Repayment
FTX customers who lost their money during the collapse of the exchange will get paid back with interest, but missed out on a ….
The victims of this giant bankruptcy are getting paid back. I remember talking to a hedge fund manager who is buying distressed claims that like $0.20 on the dollar. And my only thought was, why would you even buy that? But now he looks pretty smart. He looks very smart. There are a lot of investors and even retail customers who bought up claims. Pretty soon after FTX filed bankruptcy in November 2022. They were trading around $0.10 on the dollar. You were saying $0.20 on the dollar. And now the expectation is that most customers will get 118% back. So above par, which is pretty incredible. But even though it’s above par, one thing that I’m not understanding is why it’s based on November 2022 pricing. Why couldn’t they do it more recently? So why the new CEO of RTX and the advisors have said is that is really just a requirement of the bankruptcy law and how Chapter 11 works. And we’ve seen similar pricing done in the other crypto bankruptcies, not just FTX, but the the the theory behind it is you’re locking in a price at the time of the bankruptcy. So, yes, it’s a problem if you have a volatile asset that goes up substantially in value, which is what we’ve seen with Bitcoin and other tokens since the bankruptcy. But it also protects, you know, this is bankruptcy. It’s not just about crypto, it protects downside. So if you had a claim when a company filed bankruptcy, it protects you in case the value of that claim deteriorates since the bankruptcy. So really, why is this happening? It’s a function of what bankruptcy and how bankruptcy works. And that has been a conflict with how crypto works. And we’ve seen that over and over again. This is just kind of the latest iteration of it. I can understand with, you know, the price of Bitcoin going from 15 grand at the low point where where they want it, where the bankruptcy creditors want to want a market to 62,000, 64,000, 65,000. Get that that’s recovered. What are the other assets that FTC’s has had or has that have made it possible to pay back the creditors?
Well, they have a ton of Solana, and that’s had a similarly enormous increase in price since the bankruptcy started. They also had a large stake in Anthropic, the AI startup, and they’ve sold a substantial amount of the shares they had in that. So those are two big sources of recovery. They’ve also filed a number of lawsuits to recover money that FTX, while it was run by Sam Bankman-fried, was paying out to different, you know, other companies, different nonprofit organizations. And a lot of that litigation is outstanding. So it’s a combination of litigation. Anthropic is a big, you know, big component and holdings and so on up another big component. But yeah, those are the three kind of. Biggest.
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