As the trial of FTX founder Sam Bankman-Fried nears conclusion, a proposed deal brings hope to creditors, potentially allowing them to recoup up to 90% of the remaining assets by July 2024.
The recent developments in the FTX bankruptcy case and the trial of its founder, Sam Bankman-Fried, have brought some hope for the creditors. A deal has been proposed that could see FTX creditors recouping up to 90% of the remaining assets. However, the case is far from over, and the final outcome is still uncertain.
A deal has been proposed that could potentially allow FTX creditors to recover up to 90% of the remaining assets. This arrangement, however, does not represent 90% of the initial investment, but rather the money left after the bankruptcy process. Lawyers representing the creditors are currently working to get enough investors on board to make the deal happen.
As part of the deal, customers who withdrew funds from FTX before it went bankrupt would have to return 15% of those funds. This is in exchange for freedom from the bankruptcy liquidators. If the settlement is approved, creditors could potentially retrieve their money by July 2024.
It's worth noting that the crypto industry has no reliable track record for recovering money from collapsed exchanges. However, the infamous Bernie Madoff Ponzi scheme managed to recover 88% of customers' money, which gives some hope to the FTX creditors.
Meanwhile, the trial of FTX founder Sam Bankman-Fried is nearing its conclusion. The prosecution is expected to rest their case on October 26, having presented over 20 testimonies. They argue that Bankman-Fried purposefully misled investors, resulting in an $8 billion deficit.
The defense team has yet to clarify whether they will offer a defense. If convicted, Bankman-Fried could face up to 115 years in jail. This trial is being closely watched by the crypto industry, as it could set a precedent for future cases involving collapsed exchanges.
While the proposed deal for FTX creditors and the nearing conclusion of Bankman-Fried's trial bring some hope for resolution, the situation remains uncertain. Creditors, investors, and the wider crypto industry will be watching closely to see how these cases unfold. The outcomes could have significant implications for the future of the crypto industry, particularly in terms of investor protection and accountability.