Data: FTX creditors may only recover 10-25% of the cryptocurrency

2024-09-29 08:22:51

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ChainCatcher news, according to the latest revised bankruptcy documents shared by FTX creditor Sunil Kavuri, FTX creditors may only recover 10-25% of their cryptocurrency.

Kavuri explained that creditors will be compensated based on the cryptocurrency prices at the time of the filing, which were significantly lower than today. For example, at the time of the legal filing, the price of Bitcoin was around $16,000. Kavuri stated that many FTX customers have suffered mental distress, panic attacks, divorce, and even suicidal thoughts due to the theft of their life savings. Other creditors have also expressed similar feelings of anger. Kavuri also pointed out that Sam Bankman-Fried violated FTX's terms of service and the broader definition of property rights by using customer funds to pay off outstanding debts.

It is reported that the FTX bankruptcy management team previously reached an agreement with Emergent Technologies, founded by Bankman-Fried, to obtain $600 million in Robinhood shares for creditor repayment.

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