FTX to Distribute $5B in Bankruptcy Payouts—Crypto’s Phoenix Moment or Just a Flash in the Pan?
After two years of legal wrangling, FTX is finally cutting checks—$5 billion worth—to creditors left holding the bag. The payouts start this month, but don’t expect anyone to thank Sam Bankman-Fried on their way to the bank.
From ashes to... repayments?
The collapsed crypto giant’s estate has clawed back enough assets (thanks to that sweet, sweet post-bankruptcy crypto rally) to cover nearly all customer claims at 100%. Too bad those claims are valued at 2022 prices—back when Bitcoin traded at $20k.
The fine print no one reads
: Creditors getting USD payouts today effectively score a 150% gain versus crypto claimants who opted for in-kind repayments. Nothing says ’justice’ like arbitraging a bankruptcy.
One thing’s certain: Wall Street’s vulture funds—who scooped up claims for pennies—are popping champagne. Meanwhile, the crypto crowd gets a masterclass in how finance always finds a way to profit from disaster.
