FTX exchange filed for bankruptcy on November 11 in Delaware owing nearly 1 million customers with more than $10 billion in losses. With the beginning of the proceedings of the FTX bankruptcy lawsuit, the exchange said that they owed more than $3 billion to their top 50 creditors. Moreover, it mentioned that it owes nearly $1.45 billion to the top 10 creditors, without naming them.
During the court proceedings, the exchange said it is reviewing its assets and is preparing to sell or restructure certain businesses. However, according to an expert, top creditors or equity holders may be given first preference for restructuring, while investors in Bahamas-based companies may be the next to receive.
Meanwhile, FTX account holders may be their lowest priority as they stand at the end of the queue.
On the other hand, FTX’s sister concern, Alameda Research, a trading platform, has transferred nearly $37 million USDC to an address named FalconX. This is speculated to be user’s funds which were squeezed without intimating them.
Meanwhile, the so-called ‘hacker’ who stole over $600 million worth of assets converted them to ETH and stable coins. In a recent update, these ETH were further traded in wBTC and renBTC through aggregators like 1Inch.
Therefore, it is pretty clear that the retail traders who traded on FTX exchanges on a daily basis and kept the platform active are the least considered for any restructuring. Moreover, the user’s funds which were stolen, have been utilised.
Hence, the rebroadcast of Mt. Gox rehabilitation plan is expected to repeat, and retail investors may be waiting a long time to recover their lost funds.
