FTX Customers to Receive 118% of Lost Funds with Interest: A Major Milestone in Crypto Industry Recovery

Delaware, United States United States of America
FTX customers to receive full recovery of lost funds with interest.
FTX's bankruptcy lawyers have filed an amended Plan of Reorganization with the United States Bankruptcy Court for the District Court of Delaware.
Payouts to begin in months after plan is approved by federal judge.
Recovery is subject to the condition that the amount owed is based on the value of customers' holdings at the time of FTX's bankruptcy.
Virtually all FTX creditors, including ordinary investors, will receive cash payments equivalent to 118% of their stored assets.
FTX Customers to Receive 118% of Lost Funds with Interest: A Major Milestone in Crypto Industry Recovery

FTX Customers to Receive Full Recovery of Lost Funds with Interest

In a significant development for the cryptocurrency industry, FTX customers are set to receive their lost funds plus interest following the exchange's bankruptcy filing in November 2022.

According to reports, virtually all FTX creditors, including ordinary investors who used the platform to buy and sell cryptocurrencies, will receive cash payments equivalent to 118% of their stored assets. This recovery comes from a pool of assets gathered since FTX's bankruptcy filing.

However, it is important to note that these recoveries are subject to the condition that the amount owed is based on the value of customers' holdings at the time of FTX's bankruptcy. Therefore, customers will not reap the benefits of recent surges in crypto prices.

The announcement marks a major milestone in efforts to recover $8 billion in customer assets that disappeared when FTX imploded unexpectedly. The news has brought relief to many investors who had feared they would not see their funds again.

FTX's bankruptcy lawyers have filed an amended Plan of Reorganization with the United States Bankruptcy Court for the District Court of Delaware, which outlines the distribution of virtually all assets associated with FTX at the time of its collapse, regardless of where they were located.

Despite this positive news, it will take months for payouts to begin. The plan must be approved by the federal judge overseeing FTX's bankruptcy proceedings.

It is important to remember that while this recovery represents a significant step forward, it does not change the fact that FTX imploded unexpectedly and left many investors in a precarious position. As always, it is crucial for investors to exercise caution and due diligence when dealing with cryptocurrencies and other digital assets.


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Confidence

90%

Doubts
  • Are there any potential legal challenges to the distribution of assets?
  • How will FTX's reorganization plan be received by the federal judge overseeing the bankruptcy proceedings?
  • Is there a risk that some customers may not receive the full amount they are owed due to fluctuations in cryptocurrency prices?

Sources

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Most FTX account holders will get their money back after bankruptcy

Financial Times Wednesday, 08 May 2024 07:44
  • Unique Points
    • FTX account holders will get their money back after bankruptcy
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

FTX Customers Poised to Recover All Funds Lost in Collapse

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. David Yaffe-Bellany Wednesday, 08 May 2024 05:31
  • Unique Points
    • FTX customers are expected to receive all their lost funds plus interest.
    • Under the proposed plan, virtually all FTX creditors, including ordinary investors, would receive cash payments equivalent to 118% of their stored assets.
    • Payments will come from a pool of assets gathered since FTX’s bankruptcy filing in November 2022.
    • Recoveries are subject to the condition that the amount owed is based on the value of customers’ holdings at the time of FTX’s bankruptcy.
  • Accuracy
    • FTX account holders will get their money back after bankruptcy
    • FTX had a shortfall of Bitcoin and Ethereum at the time of filing for chapter 11 in November 2022.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

FTX Files Consensus-Based Plan of Reorganization

PR Newswire Unknown FTX Wednesday, 08 May 2024 07:52
  • Unique Points
    • FTX and its affiliated debtors filed an amended Plan of Reorganization with the United States Bankruptcy Court for the District Court of Delaware.
    • The Plan contemplates the distribution of virtually all assets associated with FTX at the time of its collapse, regardless of where they were located.
    • FTX had a shortfall of Bitcoin and Ethereum at the time of filing for chapter 11 in November 2022 and has looked to other sources to repay creditors.
  • Accuracy
    • FTX forecasts that the total value of property collected and available for distribution will be between $14.5 and $16.3 billion.
    • Payments will come from a pool of assets gathered since FTX’s bankruptcy filing in November 2022.
    • FTX estimated the total value that will be distributed to creditors will range between $14.5 and $16.3 billion
    • Payments will begin after approval from the federal judge overseeing FTX’s bankruptcy.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains a few instances of inflammatory rhetoric and appeals to authority, but overall it provides a relatively neutral description of the situation. There are no clear examples of formal or informal fallacies. The author does make assertions about the recovery efforts and plans for creditors, but these seem to be based on factual information.
    • /PRNewswire/ -- 17 months after filing for chapter 11 in the District of Delaware, FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors ("FTX" or the "Debtors") today filed their anticipated amended Plan of Reorganization (the <span class=
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

81%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

FTX proposes ‘billions in compensation,’ but not everyone’s happy

Cointelegraph News Ltd. Brayden Lindrea Wednesday, 08 May 2024 07:53
  • Unique Points
    • FTX's proposal promises to repay all creditor claims plus ‘billions in compensation for the time value of their investments’
    • FTX estimated the total value that will be distributed to creditors will range between $14.5 and $16.3 billion
    • Only creditors holding claims in an allowed amount below $50,000 are eligible for the 118% recovery
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The author makes editorializing statements by expressing his own opinion about the fairness of FTX's proposal and quoting others who share the same opinion. He also uses emotional manipulation by implying that some creditors are not getting their 'money back' even though they will be receiving more than what they originally invested. The article also engages in selective reporting by only mentioning the criticism of FTX's proposal without providing any counterarguments or context.
    • We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.
    • Mike Belshe, the CEO of BitGo, posted to X on May 8: 'I understand why the bankruptcy process needs to work this way but let’s not pretend victims are getting their money back.'
    • However, some industry pundits have expressed dissatisfaction with the proposal, as its creditors aren’t set to recover their stolen funds in an amount equivalent to current market prices.
  • Fallacies (85%)
    The author makes an appeal to authority by quoting Mike Belshe's statement 'let's not pretend victims are getting their money back.' This is an informal fallacy as it does not prove or add any evidence to the argument that FTX's proposal falls short of being fair.
    • “I understand why the bankruptcy process needs to work this way but let's not pretend victims are getting their money back,”
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication