Will customers who lost money in the FTX bankruptcy get their cryptos back at the price they were worth in November 2022? That’s what a screenshot shared by a journalist on X.
suggests.
At what price will FTX’s aggrieved customers get their cryptocurrencies back?
Yesterday, a screenshot shared by journalist Wu Blockchain on X sowed discord, the latter suggesting that customers harmed by FTX will actually only recover a portion of their cryptocurrencies blocked on the exchange. More precisely, it would appear that they will only be able to recover their cryptos at the price they were worth when FTX went bankrupt.
FTX recently opened a claim window, and claims for major crypto assets were priced at $16,871 for BTC, $1258 for ETH, $16.24 for SOL, and $286 for BNB, which is a large gap from the current price.
https://t.co/zeKnz7fauy pic.twitter.com/W8cPwzVz2g– Wu Blockchain (@WuBlockchain) March 2, 2024
As indicated in the publication, the cryptocurrencies that could be distributed to customers who have lost funds on FTX, including Bitcoin and Ether, display a very significant disparity with their current price. For example, BTC is listed at $16,871, meaning that customers could lose 267.35% of their investment compared with Bitcoin’s current price.
Ether, meanwhile, is quoted at $1,258. With the ETH price currently hovering around $3,400, aggrieved investors could lose over 170% of their investment. Naturally, people responding to the journalist’s publication have voiced their displeasure, not hesitating to call it theft or scam.
The screenshot comes from the website of PricewaterhouseCoopers (PwC), one of the world’s top 4 auditing firms, responsible for overseeing the bankruptcy process of FTX Digital Markets, the Bahamian branch of the fallen exchange.
Also, the document relating to the screenshot shared by Wu Blockchain is no longer available, but PwC has issued a statement indicating that FTX Digital Markets has entered into an agreement with FTX International with the aim of combining the combined assets of the 2 entities. FTX Digital Markets customers who have lost money in the bankruptcy are invited to file a claim before May 15, 2024 on a dedicated portal.
FTX warns of dangers surrounding bankruptcy process for buyers
FTX posted a thread on X indicating that Galaxy Asset Management remained the one and only entity able to sell FTX debtors’ digital assets. An a priori necessary reminder, since according to FTX, “several unauthorized third parties are attempting to solicit offers from buyers on behalf of FTX debtors.”
In other words, Galaxy Asset Management is the only investment manager who can determine how and at what price cryptocurrencies owed to creditors to liquidate debts will be sold. The third parties in question, who are therefore operating illegally, could take advantage of the situation to acquire cryptocurrencies at bargain prices. In the worst-case scenario, this could potentially disrupt FTX’s bankruptcy process.
(1/4) The FTX Debtors’ sale of Digital Assets pursuant to Bankruptcy Court Order no. 2505 is exclusively being handled by the FTX Debtors’ court-authorized Investment Manager, Galaxy Asset Management (GDAM@galaxy.com).
– FTX (@FTX_Official) March 1, 2024
Meanwhile, Sam Bankman-Fried remains behind bars in Brooklyn, awaiting sentencing on March 28.
