Oops! $2.5B Vanishes in FTX Fiasco! 😱

Well, now, it seems FTX’s bankruptcy proceedings have taken a turn more crooked than a politician’s promise. A considerable drove of nearly 400,000 customer claims, estimatin’ up to $2.5 billion, have been tossed out faster than a bad poker hand. All account of these folks neglectin’ to meet the deadline for their identity verification.
A body might say, “strict enforcement,” but I reckon it’s more like lockin’ the barn door after the horses have done bolted. 🐴

392K Claims Disqualified, Goodness Gracious!

According to a document filed on April 2nd, the U.S. Bankruptcy Court confirms that a whole passel of 392,000 FTX customer claims have been sent packin’ for failin’ to show proper ID. That’s right, they couldn’t prove who they were, bless their hearts. These rejected claims fill up a stack of records 2,377 pages high. Some might say this could help the honest folks get their money back quicker, seein’ as how the total debt against the estate has shrunk like a frightened turtle. 🐢

Now, some folks figured these unverified claims were worth about $1 billion. But, accordin’ to that fella Sunil Kavuri, a creditor advocate, the real number is more like $2.5 billion. That includes $655 million in claims under $50,000 and a whopping $1.9 billion in larger ones—all gone quicker than a plate of hotcakes at a Sunday social.

The company, now run by a new bunch, claims verifying identities is essential, especially after the previous bunch couldn’t even be bothered to collect basic information or do proper checkin’. You know, like askin’ folks who they are before handin’ over the store! 🤷‍♂️

FTX To Begin Repayment on May 30, Hallelujah?

As part of their grand wind-down, FTX is fixin’ to start payin’ back its main creditors on May 30th, givin’ ’em full cash for what their assets were worth back when everything fell apart in November 2022. So far, they’ve scrounged up $11.4 billion to hand out, which is mighty fine progress in clearin’ up one of the biggest messes in the history of them fancy crypto-gizmos.

Still, it ain’t all sunshine and roses. FTX’s legal eagles are reportin’ they’ve received somethin’ like “27 quintillion” submissions, a good chunk of ’em bein’ phony or exaggerated. Which just goes to show you the kind of hullabaloo this whole thing is. Despite the chaos, these repayments are a real step forward for them folks hopin’ to get their money back. 🤞

And in other news from the market, Bitcoin‘s down 1% in the last day, tradin’ at $83,645, while Ethereum‘s dropped 0.6% to $1,815. The crypto world’s still on edge, with all the new laws and court cases makin’ folks nervous and keepin’ the whole industry on its toes.

2025-04-05 15:38

392K Claims Disqualified, Goodness Gracious!

FTX To Begin Repayment on May 30, Hallelujah?

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