Welcome to Extreme Investor Network, your go-to source for all things stock market, trading, and Wall Street. Today, we have some exciting news to share about the latest developments in the world of cryptocurrency exchanges.
FTX, a prominent exchange that faced a major collapse, has been making strides in recovering assets for its customers. In a surprising turn of events, FTX’s lawyers have managed to pull together a pool of assets over the past 17 months, including digital currencies and company shares, to compensate customers who lost funds when the exchange went bankrupt.
Yesha Yadav, a law professor at Vanderbilt University, remarked that the amount of assets recovered by FTX is “in general pretty unheard of,” highlighting the remarkable effort put forth by the exchange in resolving the bankruptcy situation.
However, there is a catch to this good news. The amount owed to customers is based on the value of their holdings at the time of FTX’s bankruptcy in November 2022, meaning they won’t benefit from the recent surge in the crypto market that saw the price of Bitcoin reach record highs. For example, a customer who lost one Bitcoin during FTX’s collapse would be entitled to less than $20,000, despite the current value of Bitcoin surpassing $60,000.
It’s important to note that the payout process will take time to implement. The plan needs approval from the federal judge overseeing FTX’s bankruptcy, John T. Dorsey, and any objections from creditors could potentially delay the timeline for payouts.
Stay tuned to Extreme Investor Network for more updates on this story and other important developments in the world of trading and finance. Remember, when it comes to staying informed and making strategic investment decisions, Extreme Investor Network has got you covered.
