The Reasons Of The Wrath – There fall of FTX resulted in the despair a large part of its users who find it very difficult to mourn their cryptocurrencies and their money. For both small and large investors, the idea of recovering all or part of their funds is dwindling day by day. In this case, despite the hard work of the new management of FTX to regain liquidity, history shows us that the end is rarely satisfactory for small customers. However, is all hope lost?
Stories that often end quite badly: will FTX be part of it?
Before pouring into relative optimism, let’s take a few moments to compare with other businesses. In more or less similar cases in recent American history, the victims were sometimes able to recover part of their funds. But it was never 100% the case. Far from there ! Moreover, whatever the outcome, the procedures took years before reaching.
The latest example is Mt Gox which went bankrupt in 2014, while repayment process is still being finalized. In this file, the sharing of the remaining funds will be done on less than 25% of bitcoins originally present. Which is to say that customers cannot expect that 10 to 15 cents on the dollar filed with fees removed. Because yes, that’s how Americans calculate in this type of business.
Re FTXthe investment bank Jefferies even agreed to do a little prognosis. For her, customers can reasonably expect to recover between 20 and 40 cents per dollar deposited on the platform. But from this sum potentially available, it will be necessary to deduct once again various costs: those of justice, but also the invoice for temporary administrators And that of lawyers. In the end, Jefferies believes thatbetween 10 and 35 cents seems conceivable.
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5 good reasons to keep hope for FTX customers
But now on to good news in the file. They concern the recovery of funds by the current teams of FTX. Because in bankruptcy proceedings, most of the activity of the trustee who manages the company is to recover as many assets as possible and resell them to repay creditors. First the bigger ones, then all the remaining ones. In this quest for liquidity, here are the 5 good reasons to believe in it:
All this is of course very hypothetical, but still allows to maintain a littlehope for customers of FTX. As long as the amount of available cash increases, the share returned to each creditor will be mathematically greater. But just as the financial part is progressing, the criminal part is also progressing at its own pace. And the noose is tightening around Sam Bankman-Fried. His former friend and partner, Nishad Singh, would be in the process of collaborating with justice.
The bankruptcy of FTX is there to remind us that we must remain cautious in this still very young ecosystem. Get into the habit of healthy distrust. To buy your cryptocurrencies, register now on eToro and start getting acquainted with the exciting world of blockchain technology (commercial link).
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