Good news For FTX users. $16 billions funds are use to refund users. - page 3.

goldkingcoiner

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

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

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.

It is still good news for FTX victims as receiving more money is better than less.

The news about FTX case is a good chance to share this topic to warn people about risk of storing money on centralized exchanges.
Reminder: do not keep your money in online accounts

Also good news for the crypto market as that means that they will not be able to sell their coins and lower the price but instead, perhaps buy coins with their refunded fiat and drive the price up higher. Paying back in fiat might be a slap in the face to the hodlers who were hoping to make a profit after all this time but it is better than nothing, I guess.

Good thing I do not trust exchanges and only hold my coins on my own wallets instead of some third party custodial wallets (like on crypto exchanges).

Rruchi man

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

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.

This is a medicine after death for me because no matter the positive development, although it is a welcomed development, and also because it will be exciting for people who lost money to receive it back, It still will not magically take away the distrust that some people have developed for exchanges and, by extension, cryptocurrency, or make some people who swore to themselves never to be involved with anything cryptocurrency after the bitter experience with FTX want to change their minds. The shame that FTX brought to the cryptocurrency space will always be pointed out or used as an example by critics.

Majestic-milf

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Well, half is better than none and although they can't get back their cryptocurrencies, at least they can get funds that can enable them purchase more cryptos if they so please. At least they've learned their lesson on how not to keep their coins on centralized exchanges. If care's not taken, some of the affected users may not be bothered that they don't get their cryptocurrencies back but are being settled in fiat as long as they've been settled.

FortuneFollower

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Quote from: Ziskinberg on October 08, 2024, 04:17:22 AM

Quote from: yhiaali3 on October 07, 2024, 11:39:19 PM

Of course, this is not fair to many of them, ...

I think it's a fair valuation, similar to how Mt. Gox's bankruptcy was handled. If Bitcoin had reached $100k in 2022 and they used the current valuation $62k as the basis, would they still call it unfair?

I think probably yes, however, it's how it will be handled and it won't be changed because of that "unfairness".
Roll Eyes

Fiatless

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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.

At least with the approval of the Delaware bankruptcy judge, the process of disbursing the funds will start. John Ray and his team will soon begin the process of paying investors.

Quote from: yhiaali3 on October 07, 2024, 11:39:19 PM

Although many affected users are not satisfied with the distribution method decided by the court as they will receive fiat instead of their crypto assets, the worst thing for them is that the price will be calculated at the time of the incident as the price of Bitcoin was very low.

Of course, this is not fair to many of them, but it is better than nothing, especially since if the compensation is calculated at the value of Bitcoin today at $63K, I expect that the amount of $16 billion will not be enough to compensate everyone.

Reports show that 98% of customers will get 119% of what they lost. It is possible that if they pay everyone using digital assets the money might not be enough to pay everyone. It is good news for everyone to at least get back the dollar equivalent. People should be pleased that they are getting it because most people have lost funds in bankrupt centralized exchanges.

Ziskinberg

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Quote from: yhiaali3 on October 07, 2024, 11:39:19 PM

Of course, this is not fair to many of them, ...

I think it's a fair valuation, similar to how Mt. Gox's bankruptcy was handled. If Bitcoin had reached $100k in 2022 and they used the current valuation $62k as the basis, would they still call it unfair?

bakasabo

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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.

TheUltraElite

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So anyway, I applied as a merit source :)

It is good that the people will get something back after losing everything.

The bigger lesson here is that one should not use the exchange wallets to store coins. But people outside the forum who constitute majority of the users on exchanges dont pay heed to this.

A certain scam modus starts operating when these refunds start, someone random cold call/PM with a offer to send them the money while "they" will personally arrange for a refund. Dont trust such people, follow whatever will be official.

betswift

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Quote from: yhiaali3 on October 07, 2024, 11:39:19 PM

Yes, good news, I heard this news on some channels since yesterday and it is definitely good news for everyone that this case that has been going on for years and is considered one of the worst crypto incidents is over.

Although many affected users are not satisfied with the distribution method decided by the court as they will receive fiat instead of their crypto assets, the worst thing for them is that the price will be calculated at the time of the incident as the price of Bitcoin was very low.

Of course, this is not fair to many of them, but it is better than nothing, especially since if the compensation is calculated at the value of Bitcoin today at $63K, I expect that the amount of $16 billion will not be enough to compensate everyone.

I totally agree.
It's great that people will get at least something out of this whole charade that was FTX rug, however, many will be disappointed, and many - just mad in general.
As it was said, in 2022, the BTC was around $17k Roll Eyes

Questat

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Quote from: yhiaali3 on October 07, 2024, 11:39:19 PM

Although many affected users are not satisfied with the distribution method decided by the court as they will receive fiat instead of their crypto assets, the worst thing for them is that the price will be calculated at the time of the incident as the price of Bitcoin was very low.

Of course, this is not fair to many of them, but it is better than nothing, especially since if the compensation is calculated at the value of Bitcoin today at $63K, I expect that the amount of $16 billion will not be enough to compensate everyone.

This exchange FTX filed for bankruptcy, and it’s standard for companies declaring bankruptcy to have their assets valued in fiat, likely for accounting purposes, we can read that if we doa little research. And wait... have we forgotten that Bitcoin and other cryptocurrencies are not considered legal tender in the US. The $16 billion recovered by the team is a mix of different assets, including cryptocurrency (both Bitcoin and altcoins), cash, equity, investments, and real estate or physical assets-- all of which have their own valuations.

yhiaali3

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Yes, good news, I heard this news on some channels since yesterday and it is definitely good news for everyone that this case that has been going on for years and is considered one of the worst crypto incidents is over.

Although many affected users are not satisfied with the distribution method decided by the court as they will receive fiat instead of their crypto assets, the worst thing for them is that the price will be calculated at the time of the incident as the price of Bitcoin was very low.

Of course, this is not fair to many of them, but it is better than nothing, especially since if the compensation is calculated at the value of Bitcoin today at $63K, I expect that the amount of $16 billion will not be enough to compensate everyone.

freedomgo

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

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

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.

It is still good news for FTX victims as receiving more money is better than less.

The news about FTX case is a good chance to share this topic to warn people about risk of storing money on centralized exchanges.
Reminder: do not keep your money in online accounts

That's the sad news but that's how the government are gonna process things as those coins were already used.

To give an idea on the average price in 2022.

Quote

The average closing price for Bitcoin (BTC) in November 2022 was $17,600.81. It was down 16.2% for the month. The latest price is $62,639.90.

https://www.statmuse.com/money/ask/bitcoin-price-day-by-day-november-2022

So that's pretty low compared to the current price....

And as to the usd value refund., they'll get +18% of the value of their coins that time...

Quote

The plan approved Monday will pay the vast majority of customers at least 118% of the U.S. dollar value in their accounts as of November 2022.

Some might complain about the price difference, but this is definitely better than not recovering their money at all.

BlackBoss_

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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

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.

It is still good news for FTX victims as receiving more money is better than less.

The news about FTX case is a good chance to share this topic to warn people about risk of storing money on centralized exchanges.
Reminder: do not keep your money in online accounts

freedomgo

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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.

Topic: Good news For FTX users. $16 billions funds are use to refund users. - page 3. (Read 638 times)