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failure lawyers representing customer touch by thedramatic crash of cryptocurrency rally FTX 17 months agosay that the huge majority of dupe will invite their money back — plus interest .
The news follow six months after FTX co - laminitis and former CEOSam Bankman - Fried(SBF ) wasfound guilty on seven countsrelated to fraud , conspiracy , and money laundering , with some $ 8 billion of customers ’ fund going pretermit . SBFwas hit with a 25 - twelvemonth prison time in Marchand consecrate to compensate $ 11 billion in forfeit . The crypto mogulfiled an appeallast calendar month that could last geezerhood .
Restructuring
After file for bankruptcy in recent 2022 , SBF resist down and U.S. attorneyJohn J. Ray IIIwas brought in as chief executive officer and “ main restructuring officer , ” charged with overseeing FTX ’s reorganization . briefly after take over , Ray tell in testimonythat despite some of the audits that had been done previously at FTX , he did n’t “ believe a single patch of paper in this organization . ” In the month that followed , Ray and his squad lay about track the missing monetary resource , with some $ 8 billion placed in real estate , political donations , and VC investment — include a $ 500 million investment inAI company Anthropicbefore the generative AI boom , which the FTX estatemanaged to sell sooner this yearfor $ 884 million .
Initially , it seemed improbable that investor would recoup much , if any , of their money , but signs in recent calendar month suggest that full news might be on the visible horizon , with progress made on claw back hard cash via various investments FTX had made , as well as from executives involved with the company .
We now know that 98 % of FTX creditor will get 118 % of the time value of their FTX - salt away asset in immediate payment , while the other creditors will receive 100 % — plus “ billions in compensation for the fourth dimension value of their investments , ” accordingto a mechanical press releaseissued by the FTX estate today .
In total , FTX pronounce that it will be able to distribute between $ 14.5 billion and $ 16.3 billion in cash , which includes assets presently under control of entity , including chapter 11 debtors , liquidator , the Securities Commission of the Bahamas , the U.S. Department of Justice , among various other political party .
While the shakeup plan will need approval from the relevant bankruptcy court , the intention , they say , is to purpose all ongoing disputes with stakeholder and administration , “ without costly and protracted judicial proceeding . ”
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It is worth noting here that creditors wo n’t benefit from theBitcoin boom that has emergedfrom the crypto industry since FTX went paunch - up . At the prison term of its bankruptcy filing , FTX had a huge shortfall in Bitcoin and Ethereum — far less than customer believed it actually have .
As such , the appreciation in time value of these item wo n’t be realized as part of this closure .
