{"id":90547,"date":"2024-03-28T00:00:00","date_gmt":"2024-03-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/victims-of-the-ftx-meltdown-are-getting-100-of-their-money-back-and-then-some\/"},"modified":"2024-03-28T00:00:00","modified_gmt":"2024-03-28T00:00:00","slug":"victims-of-the-ftx-meltdown-are-getting-100-of-their-money-back-and-then-some","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/03\/28\/victims-of-the-ftx-meltdown-are-getting-100-of-their-money-back-and-then-some\/","title":{"rendered":"Victims of the FTX meltdown are getting 100% of their money back \u2014 and then some"},"content":{"rendered":"

FTX founder Sam Bankman-Fried will be sentenced in a US court today, and it\u2019s anyone\u2019s <\/strong>guess how many years he\u2019ll do in the pokey: <\/strong>A handful, as his lawyers have suggested, or up to five decades, as prosecutors are suggesting. <\/p>\n

Why is it so hard to sort out? <\/strong>And why is the gulf between defense and prosecution sentencing recommendations so wide?<\/p>\n

Crypto has soared since FTX melted down \u2014 its appreciation against the greenback is <\/strong>masking the underlying losses. <\/strong>Prosecutors have called the meltdown of FTX \u201cone of the biggest financial frauds in American history.\u201d But his legal team told the judge that, in the end, everyone is being made whole through bankruptcy proceedings: \u201cEach victim . . . will receive 100 cents on the USD, plus interest,\u201d they say.<\/p>\n

Customers may in fact get 40% than the initial value of their claims <\/strong>against FTX, the Financial Times<\/a> said earlier this week, citing remarks by FTX\u2019s bankruptcy administrators. <\/p>\n

But, but, but\u2026 <\/strong>That math relies on the fact that clients who filed claims against FTX are getting their money back in USD. But their original assets were crypto, and BTC, for example, is up about 4.4x to nearly USD 70k between the time FTX\u2019s meltdown and now. The value of the AI assets FTX held \u2014 including a nearly USD 1 bn stake in Anthropic that administrators recently sold \u2014 have also soared.<\/p>\n

Read more in the <\/strong>Financial Times<\/a><\/strong> or head to our website for links to the Wall Street Journal<\/a> | CoinDesk<\/a> | CNBC<\/a> <\/p>\n

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Also worth knowing about this morning:<\/strong><\/p>\n