Good News From a Bad Situation

TL;DR

• FTX claims that 98% of its creditors should receive at least 118% of allowed claims in cash within 60 days of their proposed payout plan coming into effect.

Full Story

If you lost money in FTX, we have some good news, and some bad news.

The good news is:

The estate claims that 98% of creditors should receive at least 118% of allowed claims in cash within 60 days of their payout plan coming into effect.

Translation: you should be getting your money back, plus a little extra on top.

In fact, the FTX estate currently estimates that once all of the property that has been collected has been converted to cash — the amount available for distribution will be between $14.5B and $16.3B.

(For context — when FTX went kaput, the firm lost an estimated $8B in customer funds).

The bad news is:

Creditors will be receiving their payouts in cash

…so if you had a bunch of crypto that has since appreciated more than 118% — like for example: BTC, which has increased ~300% since FTX went under…

Then you’re going to be taking a loss.

Not great. But better than nothing.