FTX Recovers $14.5-$16.3 Billion: Most Creditors to Receive 118% of Claims Amidst Bitcoin's 270% Price Surge

New York, New York, USA United States of America
Crypto prices, including Bitcoin, have appreciated significantly since FTX filed for bankruptcy protection.
FTX has recovered between $14.5 billion and $16.3 billion in assets.
Most creditors are expected to receive approximately 118% of their allowed claims if the reorganization plan is approved.
FTX Recovers $14.5-$16.3 Billion: Most Creditors to Receive 118% of Claims Amidst Bitcoin's 270% Price Surge

FTX, the collapsed crypto exchange, has recovered more than enough assets to pay back most of its creditors in full according to recent statements from the company. The exact amount of recovered assets is estimated to be between $14.5 billion and $16.3 billion.

The exchange filed for bankruptcy protection in November 2022 after depositors rushed to withdraw their funds following reports of financial instability. At the time, FTX owed around $11.2 billion to its creditors.

FTX's former CEO, Sam Bankman-Fried, was found guilty on seven counts of fraud and conspiracy in early November 2023 and received a 25-year prison sentence.

Despite the large sum of assets recovered, FTX still had to find alternative ways to raise funds due to a significant amount of cryptocurrency missing from the exchange. The company sold various assets including venture capital projects and investments held by Alameda Research, Bankman-Fried's crypto hedge fund.

The reorganization plan, which still needs approval from the bankruptcy court, will likely bring relief to FTX customers whose funds have been locked up with the exchange since its bankruptcy filing. Around 98% of creditors are expected to receive approximately 118% of their allowed claims if the plan is approved.

Crypto prices have appreciated significantly since November 2022, which has also contributed to FTX's ability to pay back its creditors in full. Bitcoin, for example, is up around 270% since then.

FTX appointed John Ray III as CEO in November 2022 to oversee the company through bankruptcy proceedings. Ray previously oversaw the liquidation of Enron and described FTX as the biggest mess he had ever encountered.


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Confidence

91%

Doubts
  • The exact amount of recovered assets is an estimate.
  • The reorganization plan still needs approval from the bankruptcy court.

Sources

82%

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

Failed crypto giant FTX has recovered billions more than it needs to pay back bankruptcy victims

New York Post Shannon Thaler Wednesday, 08 May 2024 17:28
  • Unique Points
    • FTX has raked in billions of dollars more than it needs to pay back customers who lost funds in its November 2022 collapse.
    • FTX will have as much as $16.3 billion in cash to distribute once all assets are sold.
    • FTX owes more than 2 million customers and other non-governmental creditors about $11 billion.
    • Bankman-Fried’s FTX has enough money to pay debts back in full, plus interest.
    • FTX has sold dozens of its assets, including various venture capital projects, to stockpile more cash and pay investors back in full.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting and emotional manipulation. The author highlights the fact that FTX has enough money to pay back customers in full, plus interest, while downplaying the fact that there won't be much left for equity holders. The author also quotes a UK-based creditor who is only getting 25% of their Bitcoin back and mentions that some claims are trading at more than 100% of face value to create a sense of false hope for readers. Additionally, the article uses phrases like 'unbelievable result' and 'massive surge in crypto prices' to manipulate emotions.
    • The news is lately boosting the price of creditor claims, with some now trading at more than 100% of face value.
    • Once it sells all of its assets, FTX will have as much as $16.3 billion in cash to distribute versus about $6.4 billion earlier this year, the company said in a statement.
    • Many of those claims were trading for as little as 3 cents on the dollar immediately after the bankruptcy filing.
  • Fallacies (85%)
    The author makes an appeal to authority by quoting experts and reports from Bloomberg. This is not a fallacy as long as the information reported by Bloomberg is accurate and the author is not misrepresenting it.
    • ]In any bankruptcy, this is just an unbelievable result,
  • 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

95%

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

Wall Street found a win in the messy FTX bankruptcy

Financial Times Thursday, 09 May 2024 10:22
  • Unique Points
    • Wall Street found a win in the FTX bankruptcy.
    • FTX is in 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

96%

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 says most customers of the bankrupt crypto exchange will get all their money back

CNBC News Arjun Kharpal Wednesday, 08 May 2024 10:18
  • Unique Points
    • FTX owes creditors around $11.2 billion.
    • FTX had to find other ways to raise money because it has a large sum of cryptocurrency missing from the exchange.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains a few inflammatory rhetorical statements and appeals to authority. It also uses a dichotomous depiction of FTX's situation. However, the author provides some context for the fallacies found.
    • . Almost all customers of collapsed cryptocurrency exchange FTX will get their money back – and more, according to a court filing.
    • FTX's high-profile founder, Sam Bankman-Fried, was convicted of seven criminal counts in early November... He received a 25-year prison sentence.
    • Speaking about FTX in November 2022, Ray said that
  • 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

98%

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

Collapsed FTX says it can pay most creditors back in full

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Olesya Dmitracova Wednesday, 08 May 2024 11:11
  • Unique Points
    • FTX has recovered enough assets to pay most of its creditors in full.
    • FTX had recovered assets associated with the exchange at the time of its collapse with an estimated value between $14.5 billion and $16.3 billion.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority fallacy when it states that FTX has recovered enough assets to pay most of its creditors back in full and that the plan contemplates payment in full of all non-governmental creditors based on the value of their claims as determined by the bankruptcy court. This is an appeal to authority because it assumes that just because the bankruptcy court determines the value of claims, it means that FTX has actually recovered enough assets to pay back all creditors in full.
    • ]The plan contemplates payment in full of all non-governmental creditors based on the value of their claims as determined by the (relevant) bankruptcy court[.
    • We are pleased to be in a position to propose a Chapter 11 (bankruptcy) plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.
  • 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