Good news For FTX users. $16 billions funds are use to refund users.

fuguebtc

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Quote from: SamReomo on October 14, 2024, 06:01:51 PM

Quote from: fuguebtc on October 12, 2024, 09:15:57 AM

As announced they will pay creditors in USD, not bitcoin or any altcoin, shitcoin. So there have been some theories that FTX's debt repayment will not be negative, but on the contrary, it could bring positive things to the market if the victims continue to use that money to invest in the market again.

I don't think that the victims who get their money back will invest it again in crypto market. Most of them might be dishearten due to FTX's collapse and that's why they might have formed negative beliefs about crypto market in general. The ones who have formed those negative beliefs will never ever think about investing their money in crypto market again.

It all depends on them because if they are honest they will not blame crypto and will admit it is their fault. Because I believe that as a crypto investor, everyone is very familiar with the saying “not your keys, not your coins”. If they adhere to this, never trust any third party and they will never fall into such a heartbreaking situation . Only selfish people blame crypto when it's their fault.

As I see it, many people were victims of Mt.gox and it's been 10 years but they are still bitcoin investors, they haven't left the market or blamed the market as you think . Not everyone is selfish, not everyone has negative thoughts or gives up early just because of a few failures.

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Quote from: fuguebtc on October 12, 2024, 09:15:57 AM

As announced they will pay creditors in USD, not bitcoin or any altcoin, shitcoin. So there have been some theories that FTX's debt repayment will not be negative, but on the contrary, it could bring positive things to the market if the victims continue to use that money to invest in the market again.

I don't think that the victims who get their money back will invest it again in crypto market. Most of them might be dishearten due to FTX's collapse and that's why they might have formed negative beliefs about crypto market in general. The ones who have formed those negative beliefs will never ever think about investing their money in crypto market again.

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Quote from: Kelward on October 14, 2024, 02:27:40 AM

Quote from: bakasabo on October 08, 2024, 04:06:57 AM

I cant wait when the situation with FTX moves from words into actions. Almost every week we hear different news how something new was found, decision was taken, new guilty people found and trial would start and etc. But as far as I know, nobody received anything back yet. For these all this looks like another noise. Just words.

Yes indeed, action speaks louder than words, this is not the first time that we're hearing about how FTX will start disbursing payments to their customers. I'm hoping that it'll be for real this time and the victims that their bankruptcy affected will start to get their money back. I understand that people who are hoping to recover their funds might not be happy because they won't get the complete current value of their coins but it's better than receiving nothing, afterall up until this moment I don't think that any of them has received anything yet. This goes to show that the lesson that is taught in this forum is real, that we shouldn't leave our coins in exchanges because if it's not your keys it's not your coins.

Yeah, not only on this forum but on others and overall too - though it's unfortunate that this lesson was given in such a form, alas, it will be remembered in the thoughts of others better, so that this situation wouldn't happen to them (or there would be less chances of it happening).

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Quote from: bakasabo on October 08, 2024, 04:06:57 AM

I cant wait when the situation with FTX moves from words into actions. Almost every week we hear different news how something new was found, decision was taken, new guilty people found and trial would start and etc. But as far as I know, nobody received anything back yet. For these all this looks like another noise. Just words.

Yes indeed, action speaks louder than words, this is not the first time that we're hearing about how FTX will start disbursing payments to their customers. I'm hoping that it'll be for real this time and the victims that their bankruptcy affected will start to get their money back. I understand that people who are hoping to recover their funds might not be happy because they won't get the complete current value of their coins but it's better than receiving nothing, afterall up until this moment I don't think that any of them has received anything yet. This goes to show that the lesson that is taught in this forum is real, that we shouldn't leave our coins in exchanges because if it's not your keys it's not your coins.

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Quote from: Reatim on October 13, 2024, 10:09:17 PM

Quote from: BlackBoss_ on October 07, 2024, 09:49:10 PM

The complain is FTX's users/ victims will not receive their cryptocurrencies back, but they will receive fiat currency (or stable coin?) according to their portfolios' values at time of FTX collapse or bankruptcy. This means they will get money equivalently to portfolio values in a worst time of bear market two years ago, and it is big loss if comparing prices of cryptocurrencies in a bear market (nearly bottom range) and now in a bull market.

This is a shame but quite expected since FTX would want to spend as little as they can and this is also to maintain consistency. They need to pick the cloest time frame to when the funds were lost. This is disappointing but can still be considered a win by those who fell victim to FTX. This is a lot better than not getting anything at all.

May this serve as a reminder of the possible consequences of using an exchange to store our funds in. Do not put all your funds in one platform and make sure to diversify.

Yeah, keeping your funds in one place, especially something like any CEX - may shoot up back badly.
I agree that people, many of them in fact would be angry that they won't get the amount of money they would currently have, however, they will have at least some kind of compensation, which is better than leaving them all without anything at all.
I hope this whole situation will be a lesson for people who store most of their assets in one place.

davis196

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This news is a little bit old. I knew that FTX has lots of funds to be sent back to the investors several months ago.
Was FTX insolvent after all? How much did the FTX investors actually lose and will these 16 billion USD cover all their losses?
Will Sam Bankman-Fried get less time in prison? I'm not familiar in detail with the whole FTX drama and it's been 2 years since FTX got bankrupt. Maybe the news about this FTX refund is the main reason why the Bitcoin price went up from 60K to 63K in the past 24-48 hours.

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Quote from: BlackBoss_ on October 07, 2024, 09:49:10 PM

The complain is FTX's users/ victims will not receive their cryptocurrencies back, but they will receive fiat currency (or stable coin?) according to their portfolios' values at time of FTX collapse or bankruptcy. This means they will get money equivalently to portfolio values in a worst time of bear market two years ago, and it is big loss if comparing prices of cryptocurrencies in a bear market (nearly bottom range) and now in a bull market.

This is a shame but quite expected since FTX would want to spend as little as they can and this is also to maintain consistency. They need to pick the cloest time frame to when the funds were lost. This is disappointing but can still be considered a win by those who fell victim to FTX. This is a lot better than not getting anything at all.

May this serve as a reminder of the possible consequences of using an exchange to store our funds in. Do not put all your funds in one platform and make sure to diversify.

Darker45

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This may be good news all in all, but it's bittersweet especially to those who have huge amounts lost. Yeah, it's better to get back a small refund than nothing at all, but one can only say it with a sigh. The price has more than tripled since then.

Also, the actual refund is most likely not happening soon. What was approved was the bankruptcy plan. It wasn't yet the green light to release the funds to its former users. It will probably take more time. By the time of the refund the price could have already risen more than 500%.

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Quote from: freedomgo on October 13, 2024, 09:43:41 AM

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I hope this doesn't affect the price of cryptos, no way they are going to pay $16b to users without affecting the market. I don't think some alts market can take the pressure selling, this is going to affect all the coins from 1 down to other shitcoins. What about the coins that are not having liquidity and are not having but orders? What about the FTX token that crash from $18 down to $1, without the exchange running, no way this is going to be possible.

For the record, the amount to be paid is $12 billion, and the payment will be in fiat (USD). Since they’ve already announced the refund, we can assume that they’ve sold off the Bitcoins and altcoins, along with company properties and investments, to liquidate enough funds to cover the debts.

Based on the article that you shared OP, the starting date on when they will be paying these investors aren't disclosed yet, so we don't know when the sold off happen, or did it happen already. Whatever the case is, this is a good thing for those who lost their money storing their funds in this exchange. Who would've thought that a huge exchange like FTX will go bankrupt? I mean yes, we expect that all exchange can just experience this, but most of the time, it's the small exchanges. This time, it's FTX. This just shows that any exchange, small or big can go bankrupt anytime.

Like what others said, don't store your assets on an exchange unless you're planning to sell it. If you want to maximize the "EARN" features of different exchange, at least put an amount that you're ready just in case things go south. As for this having an effect towards crypto, since they've said that it would be paid in fiat, expect a sell-off in the future (assuming that they didn't still sell it now since they didn't disclose it) hence, pushing the prices of Bitcoin and altcoins down.

As for the exchange though, I wonder how they will recover from this, or will they recover from this.

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Quote from: Antotena on October 11, 2024, 02:24:39 PM

This really depend on what the exchange did before it went down. Kucoin had 200m stolen from their exchange and prior to when the fund was not retrieve, they promised to pay back the affect users 100% but luckily the funds was trace and were retrieve and the exchange made payment back to affected users before the outflow but ftx clearly used users funds to gamble which is clearly their fault. They must pay back that's why he went to the prison.

This is a different situation. KuCoin is still operational, while FTX has already declared bankruptcy.

It’s no longer in the hands of the former CEO or the exchange's officers. Once bankruptcy was declared, the government stepped in to take over, evaluate the remaining assets, and work on paying back users and creditors. The good news is they managed to recover $16 billion for payouts.

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I hope this doesn't affect the price of cryptos, no way they are going to pay $16b to users without affecting the market. I don't think some alts market can take the pressure selling, this is going to affect all the coins from 1 down to other shitcoins. What about the coins that are not having liquidity and are not having but orders? What about the FTX token that crash from $18 down to $1, without the exchange running, no way this is going to be possible.

For the record, the amount to be paid is $12 billion, and the payment will be in fiat (USD). Since they’ve already announced the refund, we can assume that they’ve sold off the Bitcoins and altcoins, along with company properties and investments, to liquidate enough funds to cover the debts.

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Quote from: Antotena on October 11, 2024, 02:24:39 PM

I hope this doesn't affect the price of cryptos, no way they are going to pay $16b to users without affecting the market. I don't think some alts market can take the pressure selling, this is going to affect all the coins from 1 down to other shitcoins. What about the coins that are not having liquidity and are not having but orders? What about the FTX token that crash from $18 down to $1, without the exchange running, no way this is going to be possible.

As announced they will pay creditors in USD, not bitcoin or any altcoin, shitcoin. So there have been some theories that FTX's debt repayment will not be negative, but on the contrary, it could bring positive things to the market if the victims continue to use that money to invest in the market again.

These assumptions are not without basis, if you pay attention, you will see a huge difference that every time there is news about Mt.gox compensation, the market will become negative and panic. But on the contrary, news related to FTX had almost no negative impact on the market and even had a positive impact on the FTT token. We don't need to worry too much about FTX paying $16 billion causing negative impacts on the market and should congratulate the victims on getting their money back soon.

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Quote from: freedomgo on October 07, 2024, 08:48:12 PM

A recent update came out, and it’s great news for the Bitcoin community. Usually, when an exchange faces issues, we assume our funds are gone for good. But just recently, it turns out that some of the exchange's funds were recovered and are being used to pay back users.

This really depend on what the exchange did before it went down. Kucoin had 200m stolen from their exchange and prior to when the fund was not retrieve, they promised to pay back the affect users 100% but luckily the funds was trace and were retrieve and the exchange made payment back to affected users before the outflow but ftx clearly used users funds to gamble which is clearly their fault. They must pay back that's why he went to the prison.

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In earlier reports, it was estimated that around $8-10 billion in customer funds were either misused or lost. So, the recovery of $16 billion is more than enough to cover those losses and pay back affected users. This is definitely a positive development for the FTX case.

Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved the plan to pay back former clients of the exchange using $16 billion recovered since the company collapsed, Reuters reported on Monday.

I hope this doesn't affect the price of cryptos, no way they are going to pay $16b to users without affecting the market. I don't think some alts market can take the pressure selling, this is going to affect all the coins from 1 down to other shitcoins. What about the coins that are not having liquidity and are not having but orders? What about the FTX token that crash from $18 down to $1, without the exchange running, no way this is going to be possible.

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Quote from: GreatArkansas on October 10, 2024, 12:47:37 PM

I personally lost a huge amount in FTX Exchange, and with this news, I am happy but I still do not trust it. I even already did the steps about these refunds but I am still not hoping those refunds will be successful, what's a good thing is I can see progress.
And considering it's not only me who is affected by this.
I just want to say some of their steps about the refund are extremely difficult, so for other people who already filed, keep monitoring your status and beware of a lot of fake emails being sent to you about the refunds, which I believe a lot of email addresses was leaked.

The rule to the refund process is:

Creditors first
Other users afterwards.

I don't know if their retail users will be rewarded in full or they'd take some sort of haircut and reduce percentage down. What's good about the latest developments on FTX saga is that users will get something back as opposed to 2022 when we thought it was done and over for any and all users that has money on it at the time of their bankruptcy filings.

Sorry about your loss. Just keep your fingers crossed and hopefully you will be made whole.

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Quote from: freedomgo on October 07, 2024, 08:48:12 PM

A recent update came out, and it’s great news for the Bitcoin community. Usually, when an exchange faces issues, we assume our funds are gone for good. But just recently, it turns out that some of the exchange's funds were recovered and are being used to pay back users.

In earlier reports, it was estimated that around $8-10 billion in customer funds were either misused or lost. So, the recovery of $16 billion is more than enough to cover those losses and pay back affected users. This is definitely a positive development for the FTX case.

Here's the news.

Quote from: https://decrypt.co/284982/ftx-return-16-billlion-bankruptcy-approval

Customers of collapsed crypto exchange FTX will soon get their money back after a judge gave the green light on Monday to the firm's bankruptcy plan, following nearly two years of recovering funds and reaching various settlements.

Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved the plan to pay back former clients of the exchange using $16 billion recovered since the company collapsed, Reuters reported on Monday.

Wow this is so great, much quicker turn around than Mt. Gox funds only took them 2 years vs 10! It’s pretty great that they have been able to make it right. Does anyone still use the platform?

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This is a pretty massive amount of money for crypto users to be getting back. I hope that they have learned their lesson and don’t pile it into altcoins. If even 25% of that money ends up going into Bitcoin, I suspect it would be pretty huge for the market and the price. Swallowing up all the BTC being dumped by the US government.

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Quote from: GreatArkansas on October 10, 2024, 12:47:37 PM

I personally lost a huge amount in FTX Exchange, and with this news, I am happy but I still do not trust it. I even already did the steps about these refunds but I am still not hoping those refunds will be successful, what's a good thing is I can see progress.

Is there any particular reason why you don't trust this, what makes you think you are not going to receive your funds back, even when they managed to recover some of the exchange's funds and now they'll use that to pay back the creditors. The only question i think should be asked is when exactly the repayment will start, the whole case was settled quickly, around two years, i just hope it won't be like mt.Gox, when we had many talks of repayments, but it didn't happen, up until this year.

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I personally lost a huge amount in FTX Exchange, and with this news, I am happy but I still do not trust it. I even already did the steps about these refunds but I am still not hoping those refunds will be successful, what's a good thing is I can see progress.
And considering it's not only me who is affected by this.
I just want to say some of their steps about the refund are extremely difficult, so for other people who already filed, keep monitoring your status and beware of a lot of fake emails being sent to you about the refunds, which I believe a lot of email addresses was leaked.

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Anyways, it's still good news that such amounts was used to refund some of the victims but some of is the money enough to compensate their emotional troubles that the exchange must have caused them due to it's crash? Some persons had some investment in tokens and coins that they believed would have earned them a fair profit and I will agree that some victims would have made much more profit from their holdings if those coins was right in their custody but it was not, the exchange disappointed them. Although, it's good that FTX is still kind to make sure they refund because some other exchange collapsed and didn't refund.

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Quote from: bakasabo on October 10, 2024, 05:08:02 AM

First I wanted to say that I am surprised, that if it is said that FTX "lost" $11-12 billions, but managed to find $16 billions, as it will state that they have serious bookkeeping problems.

That $12 billion on record was the amount of cryptocurrency held by users, and it was double-checked by the agency leading the investigation. Basically, that was the value in USD at the time. Meanwhile, the $16 billion recovered was a mix of currency, properties, and investments. So, they probably sold some properties and cashed out some investments to reach that figure.

Quote from: bakasabo on October 10, 2024, 05:08:02 AM

But when you have said such amount appeared due to Bitcoin price change, and users would receive USD (USDT most probably) instead of cryptocurrency they were having, then the situation seems to be more awful.

That $12 billion was the value during the bankruptcy, and the judge ruled that it should be paid in fiat, specifically in USD, not USDT or any crypto.

So, it’s going to be settled in actual legal tender cash.

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As it turns that customers have paid $1 to receive $0.33. Receiving 1/3 is still better than nothing, but such solutions isnt right anyway.

Obviously, it's not great because we're on the losing side, but what if the price back then was higher than what it is now?

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Quote from: Smack That Ace on October 09, 2024, 02:49:30 AM

Quote from: bakasabo on October 09, 2024, 02:07:52 AM

Can someone please make it clear - how much funds were lost in FTX and how much were returned/found/obtained? It is said that it is enough to refund users. Investors I think were getting something back already, as liquidators were selling some altcoins. Since a lot of lost funds have been found and are return to return, isnt it right to reconsider SBF sentence?

As I recall, when they filed for Chapter 11 bankruptcy, they owed customers $11-12 billion. Currently, they have over $16 billion in hand and that is why they claim that over 98% of their customers get back 119% of their lost money. But one important thing is when they declared bankruptcy, Bitcoin price was below $20k and now Bitcoin is over $60k and their customers will receive USD, not Bitcoin or crypto.

The asset recovery was a joint effort of the FTX team in coordination with law enforcement agencies, SBF did not make any contribution to assist the company in recovering the assets. I remember he was convicted of three crimes, including stealing client funds, so I see no reason to be lenient even if FTX recovers the debt and refunds the clients.

First I wanted to say that I am surprised, that if it is said that FTX "lost" $11-12 billions, but managed to find $16 billions, as it will state that they have serious bookkeeping problems. But when you have said such amount appeared due to Bitcoin price change, and users would receive USD (USDT most probably) instead of cryptocurrency they were having, then the situation seems to be more awful. As it turns that customers have paid $1 to receive $0.33. Receiving 1/3 is still better than nothing, but such solutions isnt right anyway.

Topic: Good news For FTX users. $16 billions funds are use to refund users. (Read 642 times)