FTX creditors will make money on bankruptcy
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Re: FTX creditors will make money on bankruptcy
#2The people that sold their stakes to people like Scott Galloway must be kicking themselves. Great trade.
Re: FTX creditors will make money on bankruptcy
#3Dumb question: why are creditors getting paid more than they are owed?
Re: FTX creditors will make money on bankruptcy
#4Dumb question: why are creditors getting paid more than they are owed?
Interest. From the article:
> "We are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors."
For what it's worth, the article also points out that Bitcoin has gone up 260% since FTX's failure, so if FTX had not collapsed, somebody hodling their BTC there might have earned 260% instead of 19%.
Re: FTX creditors will make money on bankruptcy
#5Now imagine if we did not put sbf in jail and he kept leveraging. By now it would have been a quadrillion dollar company.
Re: FTX creditors will make money on bankruptcy
#6Now imagine if we did not put sbf in jail and he kept leveraging. By now it would have been a quadrillion dollar company.
That's not how any of this works. If you steal money from the cash register to bet it all on black in Vegas, you're still going to jail even if you happen to hit and be able to return what you took.
Re: FTX creditors will make money on bankruptcy
#7Dumb question: why are creditors getting paid more than they are owed?
Interest. From the article: > "We are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors." For what it's worth, the article also points out that Bitcoin has gone up 260% since FTX's failure, so if FTX had not collapsed, somebody hodling their BTC there might have earned 260% instead of 19%.
The creditors are only "earning" 19%. The first 100% is their own investment. The comparison you are trying to make is 260% vs 19%, not 119%.
Re: FTX creditors will make money on bankruptcy
#8I bought a Solana NFT that I never took off of FTX. Anyone know if I can do anything about that?
Re: FTX creditors will make money on bankruptcy
#9Dumb question: why are creditors getting paid more than they are owed?
Interest. From the article: > "We are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors." For what it's worth, the article also points out that Bitcoin has gone up 260% since FTX's failure, so if FTX had not collapsed, somebody hodling their BTC there might have earned 260% instead of 19%.
Thankfully for the investor, the non-cryptocurrency assets generated enough return to make them whole and even give them a profit.
Re: FTX creditors will make money on bankruptcy
#10Dumb question: why are creditors getting paid more than they are owed?
If your ming vase is stolen should you get it back after it appreciated, or the thief gets the upside and you just get cash as if it were a forced sale at theft time?
Not an exact analogy but I think it at least shows there is a spectrum of situations to consider.