Crypto: Why won't FTX customers get 100% refunds?

FTX clients, after two long years of waiting, realize that this period is nothing compared to the ten years of their Mt. Gox counterparts. However, the hope of recovering 100% of their assets has collapsed, leaving a bitter taste. The latest change to the repayment plan announces a distribution ranging from 10% to 25% for FTX crypto holders, a major blow for affected traders.

FTX surprises its creditors with minimal repayment

However, it has been said that FTX will reimburse its customers in bitcoin at prices below $18,000. But it was a complete surprise for FTX's creditors when the distribution of funds was changed to their disadvantage. Initially, the expectation of a full refund seemed realistic, but the new plan does not provide only 10 to 25% restitution of lost assets.

Even more astonishing, $230 million from government seizures will be allocated to shareholdersa situation which should, according to the usual bankruptcy rules, have primarily benefited the creditors.

As stated Sunil Kavuriactivist and creditor of FTX, “ FTX transfers 18% of funds from DOJ seizures to FTX shareholders ”, a decision that sparked a wave of discontent among crypto holders.

Creditors feel betrayedand some did not hesitate to express their frustration on social networks. L'one of them was expressed thus:

“ They quietly slipped this provision into the plan after the vote, it's disgusting “.

Tensions continue to rise as investors understand that their hopes of recovery are much more limited than initially promised.

• $230 million redistributed to shareholders;
• 10 to 25% only for crypto creditors;
• The price of Bitcoin when the petition was filed was $16,000.

Crypto in turmoil: FTT climbs despite tensions

While the FTX affair is making people cringe, another surprising phenomenon has shaken the crypto market: the sudden surge of the FTT, the native crypto of the platform. In 24 hours, it jumped 60%with trading volume climbing by 3734%.

This unexpected resurgence is all the more disturbing as FTT fell by more than 90% after revelations of FTX's fraudulent activities and the company's bankruptcy in 2022.

This spectacular increase leaves many market observers perplexed, especially since FTT no longer has any intrinsic value. For traders, this reversal is a reminder that the altcoin market remains highly speculative, and this explosion seems more to come from chance than from any renewed confidence in the company.

“ We are witnessing a sort of frenzy that does not correspond to anything concrete », Explain some analysts.

FTX's creditors see no benefit from this surge, still stuck waiting to recover a fraction of their funds.

Thus, the redistribution of the $16 billion by FTX risks causing upward pressure on influential cryptocurrencies like Bitcoin and Solana, redefining market dynamics.