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FTX Has Billions More Than Needed to Pay Bankruptcy Victims

bloomberg.com

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Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#11

Post by moralestapia »

underseacables wrote: post #7
moralestapia wrote: post #6

If at the end of the story, everybody affected is made whole, could it be argued that his sentence should be reduced?

If someone robs your house and steals your things, The police arrest the burglar and get your stuff back, does that mean the burglar should go free or get a reduced sentence? NO. THE ANSWER IS NO.

That's a different crime, so your reasoning does not apply.

It my understanding (I could be wrong) that on financial crimes it does make a difference if you make the victims whole or not. No idea if it also applies somehow after the ruling, hence why I asked on this forum for intelligent discourse. Sorry if that bothers you, though.

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#12

Post by s1artibartfast »

dkasper wrote: post #8
FranGro78 wrote: post #5

Perhaps like myself, there are many people outside of the US who haven’t bothered with trying to claim? My exposure was pretty small, definitely not enough to justify trying to figure out this whole process would work in my case.

It’s mostly because crypto is close to all time highs again.

This is due to non crypto holdings. They never recovered crypto from ftx

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#13

Post by s1artibartfast »

moralestapia wrote: post #6

If at the end of the story, everybody affected is made whole, could it be argued that his sentence should be reduced?

It could help. However, it is important to recognize the opportunity costs. Simply refunding the cash paid, or a snapshot price can be much less than what the asset is currently worth.

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#14

Post by jamil7 »

moralestapia wrote: post #11
underseacables wrote: post #7

Earlier quoted context omitted.

If someone robs your house and steals your things, The police arrest the burglar and get your stuff back, does that mean the burglar should go free or get a reduced sentence? NO. THE ANSWER IS NO.

That's a different crime, so your reasoning does not apply. It my understanding (I could be wrong) that on financial crimes it does make a difference if you make the victims whole or not. No idea if it also applies somehow after the ruling, hence why I asked on this forum for intelligent discourse. Sorry if that bothers you, though.

I think the original poster was aware that it’s a different crime and was attempting to simplify the concept so you were able to grasp it a little easier.

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#15

Post by erikig »

(Sentencing Judge Lewis) Kaplan also rejected Bankman-Fried’s claim that he deserves a lighter sentence because many of his victims may be made whole on their lost investments.

"If a thief steals money, takes it to Las Vegas, and earns a handsome profit by gambling, he is still a thief, even if the funds are repaid." [1]

[1] https://www.thedailybeast.com/ftx-crypto-fraudster-sam-bankm...

SBF's crime wasn't losing money, had he gotten authorization to make these investments from his depositors, he wouldn't have been in this position.

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#16

Post by lesuorac »

moralestapia wrote: post #11
underseacables wrote: post #7

Earlier quoted context omitted.

If someone robs your house and steals your things, The police arrest the burglar and get your stuff back, does that mean the burglar should go free or get a reduced sentence? NO. THE ANSWER IS NO.

That's a different crime, so your reasoning does not apply. It my understanding (I could be wrong) that on financial crimes it does make a difference if you make the victims whole or not. No idea if it also applies somehow after the ruling, hence why I asked on this forum for intelligent discourse. Sorry if that bothers you, though.

They're not really being made whole.

> Depending on the type of claim they hold in the case, some creditors could recover as much as 142% of what they are owed. The vast majority of customers, however, will likely get 118% of what they had on the FTX platform the day the company entered Chapter 11 bankruptcy.

If you had 2 bitcoins worth say 16k each in FTX; FTX is able to give you back 32k which is the value of your bitcoin at the time. (~Nov '22). But it's not giving you back 2 bitcoins (120k; presently).

Same with if you had Solana which was $13 (~Nov '22) but is now $148.

Re: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

#18

Post by currymj »

moralestapia wrote: post #6

If at the end of the story, everybody affected is made whole, could it be argued that his sentence should be reduced?

the CEO of the bankruptcy estate sent a letter to the court arguing against this. people are "made whole" in that they will receive the dollar value of the assets on the day of the bankruptcy, but due to rise in cryptocurrency prices since then, a lot of them are still taking a big loss compared to the world without any fraud.
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