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After two long years of waiting, FTX clients realize that this period is nothing compared to the ten years of their counterparts from Mt. However, the hope of recovering 100% of their assets collapsed and left a bitter aftertaste. The latest change in the repayment plan announces distributions ranging from 10% to 25% for FTX cryptocurrency holders, a blow to affected traders.
FTX surprises its lenders with a minimum repayment
However, FTX was said to refund its customers in Bitcoin for prices below $18,000. But it was a complete surprise to FTX lenders the distribution of funds was changed to their disadvantage. At first, the expectation of a full refund seemed realistic, but the new plan doesn’t provide that only 10 to 25% restitution of lost property.
Even more surprising, 230 million dollars from government seizures will allocated to shareholdersa situation which, according to the usual bankruptcy rules, should have primarily benefited creditors.
As activist and FTX lender Sunil Kavuri said: FTX transfers 18% of DOJ seizure funds to FTX shareholders ”, a decision that sparked a wave of discontent among cryptocurrency holders.
Creditors feel he revealedand some didn’t hesitate to vent their frustration on social media. One of them put it this way:
” They quietly slipped this provision into the plan after the vote, it’s disgusting “.
Tensions continue to rise as investors understand that their hopes for a recovery are much more limited than originally promised.
- $230 million redistributed to shareholders;
- 10 to 25% for crypto lenders only;
- The price of Bitcoin at the time of the petition was $16,000.
Crypto in chaos: FTT rises despite tensions
While the FTX scandal is scaring people, another surprising phenomenon has shaken the crypto market: sudden increase in FTT, the native cryptocurrency of the platform. Jumped 60% in 24 hourswhile the volume of trades increased by 3734%.
This unexpected revival is all the more worrying FTT dropped by more than 90% after FTX’s fraudulent activities were revealed and bankruptcy of the company in 2022.
This spectacular rise leaves many market watchers perplexed, especially since then FTT no longer has any intrinsic value. For traders, the turnaround is a reminder that the altcoin market remains highly speculative, and the explosion appears to be more of a fluke than any renewed confidence in the company.
” We are witnessing a kind of madness that does not correspond to anything in particular », Explain some analysts.
FTX lenders are not seeing any benefit from this increase, they are still stuck waiting for a fraction of their funds to be returned.
Thus, the redistribution of $16 billion through FTX risks putting upward pressure on influential cryptocurrencies such as Bitcoin and Solana and redefining market dynamics.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.