FTX Payouts: A Closer Look at What Creditors Might Actually Get
The recent news about FTX creditors receiving their money back isn't as simple as it appears. The significant rise in crypto values since FTX's collapse means the payouts might be smaller than anticipated.
Adjusted Payouts Due to Crypto Surge
Sunil, representing FTX creditors, revealed that after adjusting for current crypto prices, creditors might only recover between 9% and 46% of their owed amounts. This adjustment is crucial because FTX initially promised to repay 143% in fiat currency, which doesn't account for the drop in crypto values.
Example: Bitcoin's Value Surge
- Bitcoin's Value:
- At FTX Collapse: $16,871
- Current Value: Over $110,000
- Payout Implications: A 143% payout in fiat is only about 22% in real Bitcoin value.
Ether and Solana face similar issues, meaning creditors, while receiving some money back, are still not fully compensated for their crypto losses.
Potential Extra Payouts Through Airdrops
There's a glimmer of hope. Sunil mentioned that creditors might receive additional funds through airdrops from other crypto projects. These projects view FTX creditors as valuable due to their substantial crypto holdings, potentially offering free tokens to attract them.
FTX's Payout Progress
- First Round of Payments:
- Date: February 18
- Amount: $1.2 billion
- Recipients: Creditors with claims under $50,000
- Second Round of Payments:
- Date: May
- Amount: $5 billion
- Recipients: Eligible creditors, including:
- Dotcom Customer Entitlement Claims
- US Customer Entitlement Claims
- Upcoming Payments:
- Recipients: General Unsecured and Digital Asset Loan Claims
- Amount: 61% of owed amounts
- Expected Soon
Sam Bankman-Fried's Legal Battle
Meanwhile, Sam Bankman-Fried, the former CEO of FTX, remains in prison serving a 25-year sentence for fraud and conspiracy. He is appealing his conviction, with a hearing set for November 4. His legal team argues that he was never presumed innocent and that prosecutors mishandled the case, challenging his 2023 conviction on seven felony counts.