FTX victims are expressing their discontent with the bankruptcy proceedings of the defunct exchange. They feel like they are being treated unfairly by the estate overseeing the proceedings, comparing it to the enterprise run by SBF (Sam Bankman-Fried). The main issue at hand is the compensation that FTX’s bankruptcy estate owes to the investors, which they believe may not be enough to cover what they rightfully deserve.
According to a court filing, the compensation for the investors is being calculated based on asset prices from the time when FTX went bust during the 2022 bear market. While 98% of investors are expected to receive 118% of the funds they had on FTX, some investors are worried that they may never see their money again.
Attorneys representing the defrauded investors mentioned that FTX customers are feeling “aggrieved and robbed,” with many of them seeing the bankruptcy process as a “second act of theft.” The creditors of FTX are also skeptical about the amounts pledged to them in dollar value, especially considering the significant rise in crypto prices over the past few months.
Since the FTX fiasco, SOL has surged nine times and BTC has quadrupled in value. The court filing highlighted that if it weren’t for SBF’s crimes, such as the theft and misuse of customer assets, the customers would have still owned their crypto investments today. This means they would have been able to benefit from the gains that the market has experienced since FTX’s bankruptcy in 2022. SBF was convicted of squandering at least $8 billion and was ordered to pay $11 billion in penalties, in addition to serving a 25-year prison sentence for fraud.
Furthermore, the filing revealed that the exchange’s bankruptcy estate is prioritizing certain investors over others, leaving some investors unaware of what will happen to their funds. FTT token investors, in particular, are concerned as they are at the bottom of the priority list established by the estate and may not receive any compensation.
Overall, the FTX victims are frustrated with the bankruptcy proceedings and feel like they are not being adequately compensated for their losses. The situation is complicated by the significant increase in crypto prices since FTX went bust, leaving many investors unsure if they will ever recover their funds.