4 ms·

100% of the USD value at time of bankruptcy.

by hackernudes 2y ago

WrongAssumption 2y ago
More than that, they are getting substantial interest on top of the original notional value.
- rurp 2y ago
  Sort of, everything is based on the dollar value of what they had at the time of bankruptcy. Anyone who had assests that have increased in value since then, like bitcoin, are getting back quite a bit less than they otherwise would have had.
spiderice 2y ago
This distinction sounds important but I don’t know why it is. Enlighten me?
- sgammon 2y ago
  Any fluctuation — particularly increase - in those assets, since then, is not eligible for consideration
- wmf 2y ago
  If you had 1 BTC deposited in FTX at the time of collapse you will get back around $20K but 1 BTC is worth around $70K today. You're not getting 100% back. https://www.wired.com/story/ftx-creditors-crypto-payout-rejection/ https://www.wired.com/story/ftx-creditors-crypto-payout-reje...
  - yladiz 2y ago
    You’re getting the dollar value of your investment when the bankruptcy happened, which is the only legal currency of the country where it was headquartered, so you are getting 100% in that sense. Maybe in Ecuador where Bitcoin is legal tender it would be different.
    - JumpCrisscross 2y ago
      This has nothing to do with legal tender and everything to do with the bankruptcy code. Part of the point of bankruptcy is avoiding a race to submit claims. If you use market value, then someone who was paid out earlier or later could feel aggrieved. When FTX went bankrupt, the clock was stopped and the value of every asset frozen. We ringfence some things, and there is a decent argument for ringfencing crypto held in custody, but FTX wasn't doing that, it held some crypto, a bunch of crap and a spreadsheet promising Bitcoins to randos.
    - Dudhbbh3343 2y ago
      s/Ecuador/El Salvador/
      - yladiz 2y ago
        Thanks, I misremembered.
  - nullc 2y ago
    What's more wild is that $20k price was what it was in part because FTX intentionally attempted to crash the Bitcoin price to get out from bitcoin denominated obligations, and because the bankruptcy fixed prices at a time before they had fully recovered from FTX's actions their manipulation was successful.

100% of the USD value at time of bankruptcy.

WrongAssumption 2y ago

More than that, they are getting substantial interest on top of the original notional value.

rurp 2y ago
Sort of, everything is based on the dollar value of what they had at the time of bankruptcy. Anyone who had assests that have increased in value since then, like bitcoin, are getting back quite a bit less than they otherwise would have had.

spiderice 2y ago

This distinction sounds important but I don’t know why it is. Enlighten me?

sgammon 2y ago
Any fluctuation — particularly increase - in those assets, since then, is not eligible for consideration
wmf 2y ago
If you had 1 BTC deposited in FTX at the time of collapse you will get back around $20K but 1 BTC is worth around $70K today. You're not getting 100% back. https://www.wired.com/story/ftx-creditors-crypto-payout-rejection/ https://www.wired.com/story/ftx-creditors-crypto-payout-reje...
- yladiz 2y ago
  You’re getting the dollar value of your investment when the bankruptcy happened, which is the only legal currency of the country where it was headquartered, so you are getting 100% in that sense. Maybe in Ecuador where Bitcoin is legal tender it would be different.
  - JumpCrisscross 2y ago
    This has nothing to do with legal tender and everything to do with the bankruptcy code. Part of the point of bankruptcy is avoiding a race to submit claims. If you use market value, then someone who was paid out earlier or later could feel aggrieved. When FTX went bankrupt, the clock was stopped and the value of every asset frozen. We ringfence some things, and there is a decent argument for ringfencing crypto held in custody, but FTX wasn't doing that, it held some crypto, a bunch of crap and a spreadsheet promising Bitcoins to randos.
  - Dudhbbh3343 2y ago
    s/Ecuador/El Salvador/
    - yladiz 2y ago
      Thanks, I misremembered.
- nullc 2y ago
  What's more wild is that $20k price was what it was in part because FTX intentionally attempted to crash the Bitcoin price to get out from bitcoin denominated obligations, and because the bankruptcy fixed prices at a time before they had fully recovered from FTX's actions their manipulation was successful.