Yesterday was the day of the jury's decision in Sam Bankman Fried's trial, and, just as most of us expected, the verdict was 'guilty' on all seven charges.
But what truly matters to those who have been affected by his fraud and the closure of FTX exchange is the loss that many have incurred. They are now waiting for the court to approve a plan that will allow them to receive a refund from the exchange. The big question is when and how much.
The plan to refund up to 90% of distributable assets to customers, which will be formally filed in a U.S. bankruptcy court by December 16, 2023. However, it's important to note that this 90% figure refers to the funds FTX has managed to recover, not the total amount lost by customers during the exchange's collapse. FTX customers can expect to receive 90% of the funds FTX is able to distribute to creditors.
The proposal includes a provision that customers who withdrew over $250,000 from FTX in the nine days before its collapse can pay a 15% fee on those funds to avoid potential clawback attempts.
A significant factor to consider is the opportunity cost for customers. If this plan proceeds, customers are likely to receive 85% of the dollar value of their cryptocurrency held on FTX as of November 2022, even if the value of those assets has nearly doubled in the time since. The final terms of this proposal are still subject to negotiation between FTX and its creditors, and approval from a U.S. bankruptcy court is required for confirmation, which could potentially happen in the second quarter of 2024.
I can't really understand the reason behind the decision to sell everything and refund on the dollar value of their crypto and not the cryptocurrency they had or the amount they have managed to retrieve.
maybe they want to bleed out the liquidity?
https://www.axios.com/2023/11/02/sam-bankman-fried-trial-ftx-court-verdict
