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Did FTX Customers Get SCREWED? #ftx #fraud #sbf #allinpodcast

April 10, 2024 / 00:57

This episode discusses the repayment process for FTX depositors, focusing on how they are being compensated in US Dollars based on the price of their tokens at the bankruptcy date of November 11, 2022. Key topics include the impact of the report published on November 2, 2022, which triggered a run on FTX, and the subsequent price fluctuations of cryptocurrencies like Solana, Bitcoin, and Ethereum.

The conversation highlights that while depositors are receiving payments based on the fixed price at the time of bankruptcy, the actual market prices of these cryptocurrencies have significantly increased since then. For example, Solana dropped 50% between November 5 and November 11, 2022, but has since risen 11 times its value.

The trustee's actions in selling tokens at current prices and using those funds to pay depositors at the lower fixed price are also discussed. This situation raises concerns about the fairness of the repayment process for those who missed out on the cryptocurrency market's recovery.

TLDR

FTX depositors are repaid in fixed USD amounts, missing out on crypto price recoveries since bankruptcy.

Episode

0:57
00:00:00
FTX depositors are getting paid back in US Dollars not the crypto that dollar amount is based on the price of their
00:00:05
tokens at the bankruptcy date the bankruptcy date was November 11th in 2022 super important because the report
00:00:12
that started the run on FTX was published in November 2nd was a couple of days in between those two dates and a
00:00:17
bunch of crypto plummeted salana drop 50% between November 5th and November 11th that's just one example but since
00:00:24
then salana has been up 11x bitcoin's up 4X ethereum doubled so if you one of these depositors you missed that runup
00:00:30
the trustee has been selling the tokens post runup the point is that he's selling tokens at current prices call it
00:00:39
188 and then using that to pay off depositors at $16 so the only reason the depositors have been quote unquote made
00:00:47
whole is because they're getting the benefit of this runup but they're not paying them back at the price of their
00:00:51
Salon today they're paying them at this price that got fixed at the time of the bankruptcy

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    Most shocking

Episode Highlights

  • FTX Depositors Paid Back in US Dollars
    Depositors are receiving repayments in US dollars based on the price of their tokens at bankruptcy.
    “Depositors have been quote unquote made whole.”
    @ 00m 45s
    April 10, 2024

Episode Quotes

  • They're getting the benefit of this runup.
    Did FTX Customers Get SCREWED? #ftx #fraud #sbf #allinpodcast
  • They're not paying them back at the price of their Salon today.
    Did FTX Customers Get SCREWED? #ftx #fraud #sbf #allinpodcast

Key Moments

  • Bankruptcy Date00:07
  • Crypto Plummet00:17
  • Post Runup Sales00:30
  • Fixed Price Repayment00:54