Posted on 10/08/2024 3:06:31 AM PDT by zeestephen
According to the court-approved plan, 98% of FTX's creditors will get 119% of the amount of their allowed claim...The company says it has collected between $14.7 billion and $16.5 billion worth of property for distribution...FTX previously estimated that it owes creditors around $11.2 billion.
(Excerpt) Read more at cnbc.com ...
Reminds me of Martin Shkreli, the guy who cornered a pharmaceutical drug and raised the price 700%.
He was eventually charged with Securities Fraud, but the Feds could not find ANY investors who lost money.
Shkreli did 6.5 years - and, no one lost a penny.
Its not whether a crime was committed that is important but rather the seriousness of the charges…
How do you distribute more than is owed yet call it a ‘bankruptcy’?
On the other hand, the Feds could not prove that any person was financially injured by those violations.
Civil fines. Home confinement. Parole. Loss of passport. Barred from the Securities Business. All of those are completely obvious.
But, 25 years and 6.5 years in prison?
That is ridiculous.
was he convicted of defrauding his creditors, or defauding his investors? How much money did they get back?
In a bankruptcy, creditors get paid BEFORE investors.
No one was financially injured.
The customers would have been a lot happier if they distributed the original Bitcoin.
I believe they converted shareholder and creditors money to private (their own) use. The bankruptcy referee was able to "claw back" the funds. Madoff + his wife + his sons own assets were worth about 10% of the "investors" accounts. There was some luck in that one of his friends who made about seven billion from his "investments" left an estate worth about twice that. His widow turned over the seven billion, from about ten years before the bankruptcy without hesitation.
No one was financially injured.
What about the "investors"? Sounds like they are SOL.
The congress critters will be running to the trough to get those Ukrainian kickbacks
“... or defauding his investors? How much money did they get back?”
~~~
That was my question.
It’s always about saving the ‘banks’. Little guy be damned.
The money launderers and those bribing public officials through a crypto exchange will not come forward to claim damages. The crime still stands. Sam Bankman-Fried wasn't running a Ponzi Scheme, he was hosting a money laundering and payoff exchange.
That wasn't his real crime though. His real crime is that his money laundering and payoff exchange was competing with exchanges within a syndicate that he wasn't a part of.
In late 2023, FTX proposed a customer property settlement that would return more than 90% of customer funds that were on deposit on the day FTX declared bankruptcy.
Keep in mind that the collapse of FTX was caused by the collapse of Bitcoin value in 2022.
Bitcoin value fell from $64,000 to $16,000 in 2022.
FTX had massive withdrawals.
Exactly like a bank panic that destroys a completely healthy bank.
I expect that the liability was for the original purchase price and not the appreciated value.
The losses were huge based upon the decrease in the value.
Remember, the millions of dollars went to the Democrats.
A 19% gain on every dollar invested... Somebody doing the bankruptcy, obviously has money invested.
Calculated from the date of bankruptcy - 11 NOV 2022.
Bitcoin crashed to $16,000 during that same time period.
Bitcoin close to $63,000 as I write this - almost a 4X.
Govt hates virtual currency
and there is fraud in these exchanges
That said doesn’t seem fair
The thing is, you are measuring the compensation in dollars. If measured in bitcoin, they’ve still taken a huge loss.
FTX collapsed because of massive withdrawals.
Almost all of the remaining customers wanted out.
Since Bitcoin had crashed from $64,000 to $16,000, it is not a given that those customers would have kept their Bitcoins, or that cash customers would have immediately bought new Bitcoins.
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