FTX Repayment Plan Changes Leave Creditors Feeling Scammed Twice
Key points:
- FTX crypto holders to recover only 10-25% of lost assets.
- Repayments based on petition date prices, frustrate creditors.
FTX crypto holders could recover only 10-25% of assets, while preferred shareholders benefit from a $230M fund under the latest FTX repayment plan changes.
FTX Repayment Plan Reduces Crypto Holders’ Recovery
That would leave crypto holders with only a 10-25% recovery of the lost assets under FTX’s repayment plan. Much of the forfeited funds would go to preferred shareholders, and creditors are already angry.
Asset prices will be calculated from the date of bankruptcy filing-in other words, many investors are in for a disappointment since current crypto prices have surged, further opening up the gap on losses.
Read more: Former Alameda Research CEO Very Cooperative During Trial Involved in FTX
Preferred Shareholders to Benefit from FTX Repayment Plan
FTX will pay 18% of surrendered money into a $230M Preferred Shareholder Remission Fund. This means equity investors benefit while crypto holders have a considerably lower recovery rate.
The fall of FTX resulted in $12.7 billion of repayments owed. Because repayments are pegged to the lower asset prices during bankruptcy, many crypto holders are wondering just how fair the plan is.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
FTX Repayment Plan Changes Leave Creditors Feeling Scammed Twice
Key points:
- FTX crypto holders to recover only 10-25% of lost assets.
- Repayments based on petition date prices, frustrate creditors.
FTX crypto holders could recover only 10-25% of assets, while preferred shareholders benefit from a $230M fund under the latest FTX repayment plan changes.
FTX Repayment Plan Reduces Crypto Holders’ Recovery
That would leave crypto holders with only a 10-25% recovery of the lost assets under FTX’s repayment plan. Much of the forfeited funds would go to preferred shareholders, and creditors are already angry.
Asset prices will be calculated from the date of bankruptcy filing-in other words, many investors are in for a disappointment since current crypto prices have surged, further opening up the gap on losses.
Read more: Former Alameda Research CEO Very Cooperative During Trial Involved in FTX
Preferred Shareholders to Benefit from FTX Repayment Plan
FTX will pay 18% of surrendered money into a $230M Preferred Shareholder Remission Fund. This means equity investors benefit while crypto holders have a considerably lower recovery rate.
The fall of FTX resulted in $12.7 billion of repayments owed. Because repayments are pegged to the lower asset prices during bankruptcy, many crypto holders are wondering just how fair the plan is.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Latest
CoinList to develop the DePIN Market with the First DePIN Collaboration with U2U Network this Q4
5 Best Cryptos to Invest in Right Now: November’s Top Performers
Press Release
CoinList to develop the DePIN Market with the First DePIN Collaboration with U2U Network this Q4
