Violet Vallaya
Bankruptcy lawyers representing victims of the dramatic cryptocurrency exchange implosion at FTX just 17 months ago have now announced that the vast majority of victims will indeed receive their money back — and then some! 🚀
The saga began when FTX co-founder and former CEO Sam Bankman-Fried (SBF) was found guilty on seven counts related to fraud, conspiracy, and money laundering. A staggering $8 billion of customer funds had gone missing, leaving investors in despair. SBF was slapped with a 25-year prison sentence and ordered to pay a jaw-dropping $11 billion in forfeiture. His appeal, filed last month, could drag on for years.
But fear not, fellow crypto enthusiasts! The FTX estate, under the new leadership of U.S. attorney John J. Ray III, has been hard at work. Ray, who once declared he didn’t “trust a single piece of paper in this organization,” had embarked on a mission to track down the missing billions.
And guess what? A whopping 98% of FTX investors will receive 118% of the value of their FTX-stored assets in cold, hard cash! The other creditors won’t be left empty-handed either; they’ll get a solid 100% return, plus “billions in compensation for the time value of their investments.” 💰
What’s more! The FTX estate plans to distribute between $14.5 billion and $16.3 billion in cash, including assets from various entities. It’s like a crypto treasure hunt: real estate, political donations, and even a $500 million investment in an AI company before the generative AI boom. Talk about a moonshot! 🌙
While the bankruptcy court still needs to approve the reorganization plan, the intention is clear: resolve disputes without costly litigation. Unfortunately, the creditors won’t ride the Bitcoin bull; FTX’s shortfall in Bitcoin and Ethereum won’t translate into crypto riches. But hey, at least they won’t need to decipher any more blockchain whitepapers!
So, crypto warriors, keep your wallets ready. The FTX Phoenix is rising, and it’s bringing interest with it! 🌟
