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 Changes Leave Creditors Feeling Scammed Twice 2

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.

William

In the fast-paced world of day trading, I've honed my skills for over six years using technical analysis tools and crafting short-term strategies. My expertise isn't from textbooks but from the trenches of online trading communities. I excel at reading chart patterns, applying technical analysis, and mastering risk management. "The market is about probabilities," I declare. As Editor at Coincu, I empower readers with the insights and strategies to conquer the dynamic world of day trading.

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