From Bloomberg:
https://tinyurl.com/ftxbkrptcy
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https://tinyurl.com/ftxbkrptcy
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FTX Bankruptcy Trade Mints 200% Windfall and Sparks Legal Battle
- Thread starter BMK
- Start date
In this article, they mention the claims will be paid in full. But I was following a thread on X where a similar case also made this statement, but paid in full meant the value at time of bankruptcy. This means when Bitcoin was 20k or so. Getting back the market price of Bitcoin in November 2022 is different than getting back your Bitcoin. The article doesn't go into details though. Since ftx apparently had no Bitcoin, what appreciated in value that they did have??
"The FTX bankruptcy is unusual for distressed firms in another crucial way: they’re buying up claims on client accounts, a murkier and riskier transaction than the typical purchase of defaulted bonds or loans — debts that are usually backed by clear legal documentation."
"The exchange didn’t have debt in the traditional sense, so funds bought the rights to customer accounts — mostly small claims backed by the holdings of part-time traders and enthusiasts."
"Gathering up those accounts is a lot more complicated than buying distressed bonds. Claims are often negotiated directly with aggrieved former customers of the defunct platform. And the claims are all unique, holding differing blends of hard currency and cryptoassets."
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The best part:
" Junho Bang apparently isn’t rushing to conclude the deal. He also has a much bigger case on his mind.
He’s accused of stealing digital assets from a lender called Haru Invest and was indicted by South Korean authorities in February. While that case and Attestor’s suit over FTX claims are playing out independently, Bang is at the center of both."
"The exchange didn’t have debt in the traditional sense, so funds bought the rights to customer accounts — mostly small claims backed by the holdings of part-time traders and enthusiasts."
"Gathering up those accounts is a lot more complicated than buying distressed bonds. Claims are often negotiated directly with aggrieved former customers of the defunct platform. And the claims are all unique, holding differing blends of hard currency and cryptoassets."
----------------------
The best part:
" Junho Bang apparently isn’t rushing to conclude the deal. He also has a much bigger case on his mind.
He’s accused of stealing digital assets from a lender called Haru Invest and was indicted by South Korean authorities in February. While that case and Attestor’s suit over FTX claims are playing out independently, Bang is at the center of both."
Yes, it means getting back the value at the time when all the assets were frozen by the courts and the SEC. This has been discussed extensively in other threads. That is how a bankruptcy works, in the US and many other countries.
FTX had Bitcoin. It was sold off and converted into fiat money as part of the bankruptcy process.
That is how bankruptcy works, in the US and many other countries. The task of the bankruptcy trustee, or the firm appointed by the trustee or the court, is to liquidate the company's assets, and use the money to pay the company's debts, to the extent possible. Usually that means that most creditors will not the get the full amount of what they are owed. But this case is working out differently.
Bankruptcy estates do not hold assets indefinitely. They have to sell the stuff and use the money to pay creditors.
The system is working as it is designed. Within the context of a bankruptcy, it is accurate to say that creditors are getting "paid in full." It is also true that they are getting only what their bitcoin was worth at the time FTX shut down. That is how bankruptcy works.
I don't think it always works that way. When the FBI seized Silk Road...the US treasury appointed trustees and they pushed it into bankruptcy quickly. But the Bitcoin was held by the trustees/treasury for a very long time.
Usually...when the principle recipients of a bankruptcy are retail or consumers...trustees liquidate immediately without notion of lost opportunity. When the principles are a large corp or large investor...the trustee sells the assets very slowly and intention is on selling at a very good opportunity.
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Exactly;
and when there is a whole whale size group of gov agencies, IRS\ ATF\NYPD, UK agencies \ may take longer with bitcons\big cons............................................................................
DEA \also\French authorities [ 50,000 Frenchmen can be wrong like Adrian Rogers + Peter Lynch warned
}I am wondering myself whether the feds went so aggressively to seize Silk Road mainly for the bitcoin...particularly on the way the coins were handled after they seized the site. They obviously didn't do it to stop drug sales because drugs of all type have NEVER been easier to obtain (many states have even decriminalized or legalized many different drugs). And the Mt Gox collapse had all the earmarks of US federal infiltration and involvement in its collapse. I think US feds took down Karpelès in both instances and its seems to be the bitcoin and the try to sabotage bitcoin development and advancement. Im not even sure Ulbricht was the principle in Silk Road. Maybe just a main programmer and manager. I think Karpelès started cooperating with the Feds and Ulbricht took the fall. Karpelès prolly still cooperating to this day.
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This is an interesting article that appeared in The Guardian today:
https://www.theguardian.com/business/2024/mar/27/where-did-ftx-money-go
FYI: If the site says "You need to register to keep reading," scroll down, and you can click "I'll do it later." There is no paywall, and you can always skip registration.
https://www.theguardian.com/business/2024/mar/27/where-did-ftx-money-go
FYI: If the site says "You need to register to keep reading," scroll down, and you can click "I'll do it later." There is no paywall, and you can always skip registration.
https://www.coindesk.com/consensus-...-still-dont-know-10-years-after-the-collapse/
this one is also good. Its very difficult to find actual verified audit trail of what happened to the Silk Road bitcoin. But, if you consolidate the bitcoin of Mt Gox, Silk Road and FTX and you could somehow trace it to a .gov agency trading it...it would probably explain about 70% of the radical volatility (the undermining, strong fear inducing volatility) of bitcoin...since much of the rest of bitcoin is held by large, longterm buy and hold groups.
this one is also good. Its very difficult to find actual verified audit trail of what happened to the Silk Road bitcoin. But, if you consolidate the bitcoin of Mt Gox, Silk Road and FTX and you could somehow trace it to a .gov agency trading it...it would probably explain about 70% of the radical volatility (the undermining, strong fear inducing volatility) of bitcoin...since much of the rest of bitcoin is held by large, longterm buy and hold groups.