Author: Joanna Wright Source: dlnews Translation: Shan Ouba, Golden Finance
FTX Exchange is expected to raise up to $16 billion to return to creditors. This is good news for investors, who were once worried about losing all their money.
According to FTX's bankruptcy reorganization plan, if the plan is approved by the court, investors will have the opportunity to get their principal back and receive 9% interest.
However, after carefully reading this 90-page distribution plan and its 163-page explanatory document, we found that whether FTX victims can get the interest depends on an important question: Will the US government give priority to ordinary investors in getting paid?
Review of events:
FTX, a cryptocurrency exchange founded by former genius Sam Bankman-Fried, suffered a run at the end of 2022.
Then a shocking scandal broke out: FTX misappropriated customer funds and mixed them with its own funds for political donations, celebrity endorsements, and the purchase of luxury properties.
After FTX declared bankruptcy, law enforcement and government agencies such as the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service (IRS) also joined the investigation.
The CFTC has now claimed $8.7 billion in fines from FTX, and the IRS has demanded $24 billion in back taxes.
According to U.S. bankruptcy law, the order in which creditors are paid is crucial. Ordinary creditors want to be first in line because funds may be limited and cannot meet the demands of all creditors.
FTX currently requires the CFTC, IRS and any government agencies that may have claims on FTX assets to rank their claims behind ordinary investors, so that investors can be paid first.
The question is:
Will the US government give up billions of dollars in fines and the opportunity to "save face" after regulatory mistakes?
What’s more, it’s understood that the majority of FTX’s depositors (79%) aren’t even based in the U.S.
It’s unclear what the final outcome will be. Interestingly, though, FTX’s interest payments appear to be an attempt to appease angry victims.
Many of FTX’s creditors hate the proposed distribution plan because they won’t be paid in Bitcoin and Ethereum, but in cash based on the dollar value of its cryptocurrencies on November 11, 2022, the day FTX filed for bankruptcy. That day, the price of Bitcoin was more than 70% lower than it is today. That’s really depressing.
They won’t be able to enjoy the historic rally in the cryptocurrency market this year, which has even seen Bitcoin hit a new all-time high.
While some customers insist they were defrauded, one question remains: Can they get their money back at the price of Bitcoin when it crashes in 2022?
Buffett bought shares of Japan's five largest trading companies, namely Mitsui & Co., Mitsubishi Corporation, Sumitomo Corporation, Itochu Corporation and Marubeni Corporation. From the perspective of returns, the shares of the five major trading companies, denominated in yen, have increased by at least 2 times and at most nearly 5 times.
JinseFinanceFTX's bankruptcy estate aims to fully reimburse claimants by the end of 2024, offering hope after nearly two years since the exchange's collapse. Despite positive news, challenges persist, including disputes over the fairness of the repayment plan and legal issues surrounding FTX's leadership. The path to reimbursement remains uncertain for users awaiting closure amidst ongoing complexities within the bankruptcy process.
SanyaWhat do some domestic industry media mean by the so-called legalization of crypto assets in Japan?
JinseFinanceJapan's revised tax laws streamline corporate crypto taxation, aligning with investor norms and aiming to spark domestic entrepreneurial growth.
Hui XinSince 2017, Binance has been striving to obtain a phased 'partially legal' status in certain global regions through diplomacy, acquisitions, joint investments, philanthropic funding, and other means.
CaptainXBinance and CEO Zhao Changpeng admit intentional violations, facilitating billions in unregulated crypto transactions. Zhao resigns as CEO, faces potential 18-month sentence. Legal battles continue over sentencing and extradition. Binance.US claims independence from Zhao's governance.
CaptainXBinance faces $34 billion in fines from FinCEN and $9.68 billion from OFAC for not reporting over 100,000 suspicious transactions involving terrorism, ransomware, child exploitation, and other illegal activities. Future penalties and strict regulations may impact Binance for the next five years.
CaptainXThe hearing is titled “Investigating the Collapse of FTX, Part I,” and is expected to include details of how the collapse affects the broader digital asset industry.
Others
Coinlive CZ did not make it, but Justin Sun is here to save the crypto world!
Nell