Key points:
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
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. |
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