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Interest. From the article:

> "We are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors."

For what it's worth, the article also points out that Bitcoin has gone up 260% since FTX's failure, so if FTX had not collapsed, somebody hodling their BTC there might have earned 260% instead of 19%.




The creditors are only "earning" 19%. The first 100% is their own investment. The comparison you are trying to make is 260% vs 19%, not 119%.


Thank you, corrected!


Yeah, this is not creditors "making money". Anyone who had 1 bitcoin in FTX is not getting their 1 bitcoin back, which is massively more valuable.

Instead, they are getting 119% of the USD value of a bitcoin in late 2022. They are massively losing out. They are effectively getting back 33% of their assets.


aren't a lot of the FTX creditors cash creditors? they're definitely making money.

Dunno what the breakdown between bitcoin and cash creditors are, but the only way to make bitcoin creditors more whole would be to stiff the cash creditors.

And the FTX token creditors are making [DIVIDE BY ZERO]


One way to think about it, is that if FTX was whole, then it's 119% cash (since that's the where the 19% is coming from).


FTX didn’t have their BTC though. That’s part of the problem.


But this assumes the person wouldn’t have withdrawn their funds, during that period of time.


They could also have withdrawn their funds and invested them in something else.


Thankfully for the investor, the non-cryptocurrency assets generated enough return to make them whole and even give them a profit.


If bitcoin is up 260%, the non-cryptocurrency assets must bringing the average return down, right?


From what I’ve read there wasn’t really that much bitcoin left by the time they were shuttered, and their own tokens were worthless.

That’s part of the whole issue - SBF was just doing whatever he felt like with customer assets and balances. Plus inventing assets out of thin air.

The profit that people will get has largely been driven by FTX’s investments in AI stuff, which turn out to have done great.

Think about it this way (exaggerated to make a point) - you give SBF $10k to buy Bitcoin on FTX. You expect him to have that amount of BTC locked away somewhere for you. Instead he blows your $10k on houses for himself, giving money to politicians, sponsoring sports grounds and buying stuff for his parents. He’s throws some of it into AI firms.

At the time of bankruptcy all he’s actually holding for you is $200 of BTC. That goes up in value to $460. W00t.

But wait, two years later those few million he threw at AI seemingly for shits and giggles are now worth a few billion, so you can be made whole and even get a little profit.


LOL, got my maths a bit wrong there, 260% growth of $200 would be $720, not $460. Doesn't change the overall picture though :)




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