Opinion: FTX Victims Should Be Grateful, Not Angry
Connor Sephton is a journalist based in London, who also works for Sky News and the BBC as a radio newsreader and online reporter. He has covered crypto since 2018 — reporting from major conferences...
A judge has finally approved plans that will deliver much-needed repayments to FTX customers — almost two years after the doomed exchange collapsed.
Under the deal, 98% of those owed money will receive 119% of their claim back. Essentially, they’ll be rewarded interest for the inconvenience and distress caused by this bankruptcy.
But even though this will bring the sorry saga to a close and allow victims to finally move on with their lives, a sizeable chunk of creditors remains deeply dissatisfied by the outcome.
In some ways, it’s understandable. The amount they’ll receive is based on the cash value of their accounts back in November 2022.
That’s not too raw a deal for those who had dollars lying around — but it is pretty calamitous for those who held Bitcoin, Ether, Solana, and other cryptocurrencies.
Why? Because someone who had 1 BTC and 10 SOL will be entitled to about $18,667… substantially less than what this crypto stash is worth at current market rates.
If the payouts were based on the value of these coins now, that same FTX creditor would be walking away with about $64,000 — almost four times more than what they’re actually getting.
For those who trusted Sam Bankman-Fried and were drawn in by his company’s star-studded adverts, this will be a kick in the teeth. FTX was chronically mismanaged, and risky bets were being made using customer funds without their consent. Because of this, victims missed out on a huge rebound in the crypto markets — and potentially life-changing sums of money.
But at the same time, there’s
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