Revised bankruptcy records show that FTX creditors will only recoup between 10% and 25% of their original bitcoin holdings, thus bracing for major losses is premised on the value of the assets when FTX filed for bankruptcy, which saw Bitcoin trading at $16,000—far less than its present worth near $65,000, this payment scheme is premised.
Those impacted by this situation are generally outraged; many of them spent their life savings in the now-closed exchange. Outspoken creditor Sunil Kaviri revealed that many FTX users still suffer from extreme financial and emotional pain; some even deal with mental health issues including panic episodes.
Many creditors have fiercely attacked the proposed money distribution strategy as they feel it does not sufficiently solve the significant disparity between the cost of cryptocurrencies now and then. Creditors contend these actions fall short of providing justice even with continuous attempts including the sale of $600 million in Robinhood shares owned by former FTX CEO Sam Bankman-Fried.
Following breaches of anti-money laundering (AML) policies, former Binance CEO Changpeng “CZ” Zhao walked free from U.S. custody in associated judicial processes. Roman Storm, co-founder of Tornado Cash, has therefore been kept under trial after the court dismissed the discharge of accusations against him for violations of sanctions and conspiracy.
The government of South Korea has also made news for fined the Worldcoin Foundation for privacy legislation infringement. The fine results from illegal biometric data collecting by South Korean nationals—including iris scans—without permission.
Many FTX creditors are left to negotiate the long-lasting financial and emotional harm resulting from the exchange’s failure as the repercussions from these disputes unfolds. Although the healing process is continuous, the frustrations of people impacted are evident as they wait for justice and hope for improved results.
