Top Creditors May Receive $3B from FTX, But Retail Traders May Not Be on the List!
FTX exchange filed for bankruptcy on November 11 in Delaware owing nearly 1 million customers with more than $10 billion in losses. With the beginning of the proceedings of the FTX bankruptcy lawsuit, the exchange said that they owed more than $3 billion to their top 50 creditors. Moreover, it mentioned that it owes nearly $1.45 billion to the top 10 creditors, without naming them.
The exchange during the court proceedings said that it was reviewing the assets they have and are preparing for the sale or reorganization of some business. However, as per an expert, the top creditors or the equity holders may be given the first preference for restructuring, while the investors in the Bahamas-based companies may be the next ones to receive.
Meanwhile, the FTX account holders could be their least priority as they stand at the end of the queue.
yikes.. reason why rich gets richer and retail gets fucked — frxresearch (@frxresearch) November 21, 2022
On the other hand, FTX’s sister concern, Alameda Research, a trading platform, has transferred nearly $37 million USDC to an address named FalconX. This is speculated to be user’s funds which were squeezed without intimating them.
Meanwhile, the so-called ‘hacker’ who stole assets worth more than $600 million swapped them into ETH & stablecoins. In a recent update, these ETH were further traded into wBTC & renBTC through aggregators like 1Inch.
Therefore, it is pretty clear that the retail traders who traded on FTX exchanges on a daily basis and kept the platform active are the least considered for any restructuring. Moreover, the user’s funds which were stolen, have been utilised.
Hence, a re-broadcast of MT. Gox’s rehabilitation plan is expected to repeat, and retail investors may wait for a long time to retrieve their lost funds.Source