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I keep seeing this "headline" and it is the very definition of fake news. If you held SOL on FTX they will pay you at the Nov 2022 prices which was under 9 per

• a_dabbler 2y ago
  I held mainly dollars on the exchange at the time. I see your point regarding the crypto holders on the exchange though.
• graeme 2y ago
  That's putting it a little strong. FTX went bankrupt. You might normally expect to lose a substantial portion of your assets when that happens. To instead get back everything in dollar terms with a gain is remarkable. If you sent crypto to FTX legally you no longer owned them. You owned a claim to $X on FTX. It just wasn't analogous to a regulated broker where the client is the legal owner of a security. Iirc the contract with FTX is the creditors sold their stake to FTX. It is valuable to explain that these creditors underperformed simply holding crypto but calling it "fake news" really misrepresents the situation.
  • kwar13 2y ago
    Not really. You owned a claim to the very specific asset you deposited in an exchange, which is how segregated accounts work. Why US Dollars? FTX.us was domiciled in the US but FTX.com was in Bahamas. Why not some other arbitrary currency? Why not Bahamian dollar? Why not in Bitcoin? FTX has paid close to 1 billion dollars in fees to army of lawyers, consultants, bankers etc. in what was even at the time an 8 billion dollar bankruptcy. Even if FTX froze in time and did nothing at all, its assets would've recovered completely that 8 billion gap in its funding. It's been a boon to everyone involved and they're taking full advantage. I have no sympathy for FTX. It was a clear case of theft. However the creditors are getting robbed twice. Once by FTX, once by the bankruptcy proceedings.
    • graeme 2y ago
      >You owned a claim to the very specific asset you deposited in an exchange, which is how segregated accounts work. The company went bankrupt. Bankrupt. They did not have the assets they purported to have. FTX owed money to a variety of creditors including to crypto traders who deposited. They gambled on handing over their assets to a largely unregulated entity and it went bust. If a regulated securties broker goes bankrupt you still own the securities. Brokers need to follow very strict laws to be in that position. FTX faced no such regulation and if you sent them crypto you no longer owned it. FTX did. And they went bust. What you're saying makes sense if FTX were a US registered securities broker for listed securities on an exchange. But that wasn't what it was. And they went bust.
      • kwar13 2y ago
        I think you are not distinguishing between what a bankruptcy vs. theft means. I worked over a decade in investment banking including on large bankruptcy proceedings. A bank can go bankrupt and your deposits might be in jeopardy, because there is fractional reserve banking and by law they are allowed to hold far less (in the US it would actually be 0%) of your deposits and can deny your request to redeem your assets in full in cash. That is to prevent bank runs. FTX was an exchange, and while the holding company can go bankrupt the customer assets should be always fully funded in segregated accounts. FTX stole from customers and used the fund to front run their own customer via Alameda research. Most of FTX customers were outside US and are not US residents. US Dollars in this context holds no significance. For the record, FTX.us was a registered broker. https://brokercheck.finra.org/firm/summary/158816 https://brokercheck.finra.org/firm/summary/158816 And with SEC as an exempt broker. https://www.sec.gov/Archives/edgar/data/1876386/000187638621000002/xslFormDX01/primary_doc.xml https://www.sec.gov/Archives/edgar/data/1876386/000187638621...
        • JumpCrisscross 2y ago
          > FTX was an exchange, and while the holding company can go bankrupt the customer assets should be always fully funded in segregated accounts FTX marketed itself as an exchange. That didn't make it one. Giving it money was legally akin to handing any small business in your town money. > Most of FTX customers were outside US and are not US residents. US Dollars in this context holds no significance. FTX was a U.S. company. Even the Bahamas outfit had U.S. dollar bank accounts. FTX's customers were obviously subject to U.S. jurisdiction. > FTX.us was a registered broker They owned a FINRA-member broker-dealer. Most FTX customers weren't doing business with its b-d. > with SEC as an exempt broker Not what Form D means. ("Exempt broker" isn't a thing under U.S. securities law.) Also, side note, banks can refuse withdrawals but specifically not to prevent a bank run [1]. A bank restricting withdrawals due to illiquidity is going under FDIC conservatorship. [1] https://activitycovered.com/can-a-bank-refuse-withdrawal/ https://activitycovered.com/can-a-bank-refuse-withdrawal/
• paulpauper 2y ago
  But what if bitcoin crashed even more. Then it would not seem like such a bad deal to get dollars.