Good news for the investors, if true.

“Investors and customers of Sam Bankman-Fried's failed crypto currency exchange FTC are set to recover all of the money they lost following the firm's collapse, and then some, bankruptcy filings revealed.

FTX, which was at the heart of one of the biggest fraud cases in US history, will have between $14.5 billion to $16.3 billion to pay its estimated 9 million creditors and customers back for money and assets they took.

Under a restructuring plan a federal court in Delaware, almost all of FTX's customers and investors, which included hundreds of thousands of normal people, will receive cash payments equivalent to 118% of the assets they stored on FTX. …”

DailyMail article:
https://mol.im/a/13395259

If FTX squandered billions of dollars, how can all the investors receive cash payments equivalent to 118% of the assets they stored? They must be converting the crypto they invested at the rates of the time of investment to be able to do that. Bitcoin is up over $60,000 now, over $70,000 about a week ago, so investors would be losing all the profits they would have seen if they would have just held on to it as their own Bitcoins.

At least that's what I'm guessing is happening.

If it's anything like the Mt. Gox debacle the assets that they were able to recover in the form of tokens went up in value from when the bankruptcy claims were made. People are going to bitch about how they had 2 Bitcoins but now are going to get paid out 0.75 essentially breaking even (or 118% after the court and lawyers take their cut) when they should be grateful that they didn't lose it all by leaving their tokens on an exchange like an idiot.

It’s wild to see cases like this where people get their money back after an exchange collapse. Holding your crypto in an exchange can indeed be a risky move. I’ve lost funds because of hacks, which taught me the importance of self-custody and proper wallet management. Not everyone deserves harsh judgment; many don’t realize how vulnerable they are until it’s too late.

In situations where wallets get compromised, though, services like flashbots whitehats specialize in recovering assets. These teams can make a huge difference when you feel stuck and unsure about the next steps.

This message has been edited. Last edited by: rcpylon,