HomeCryptoFTX: the bankruptcy of the crypto-exchange is a “second act of theft”

FTX: the bankruptcy of the crypto-exchange is a “second act of theft”

The saga on FTX, the crypto-exchange that failed in 2022, continues, with its victims claiming that the bankruptcy process seems to be a “second act of theft.” The victims have also filed a petition to recover 8 billion dollars of confiscated assets. 

FTX: the bankruptcy process of the crypto-exchange is a second theft

The victims of FTX, the failed crypto-exchange, are unleashing, considering the ongoing bankruptcy process as a “second act of theft”. 

In fact, the lawyers of the victims seem to have filed a petition to recover 8 billion dollars of confiscated assets. 

Specifically, what the victims of FTX desire is for a ruling to establish that the confiscated assets of the crypto-exchange (approximately 8 billion dollars) belong to its clients and not to the bankruptcy estate. 

This happens mainly because the bankruptcy code is giving priority to some creditors over others, and the holders of the FTX token are at the bottom of the priority list.

Not only that, another triggering factor dates back to the restoration plan proposed by the company last month, which would have seen 98% of the creditors obtain 118% of their credits within 60 days of court approval. 

However, this plan did not convince the victims who still lost the opportunity to profit from the price increase of criptovalute, while their funds were stuck in the limbo of bankruptcy.

FTX and the rebellion of the victims in the bankruptcy trial of the crypto-exchange

The request was submitted on Friday to the United States Court for the Southern District of New York. 

The lawyers for the victims, Adam Moskowitz and David Boies, stated in the document that the bankruptcy process has left “FTX customers feeling ‘assaulted and robbed’, many of whom view the bankruptcy process as a ‘second act of theft‘ and that the ‘FTX bankruptcy estate remains the same fraudulent business entity’ that was the enterprise run by SBF“.

Not by chance, Sam Bankman-Fried (SBF), former CEO of FTX, was sentenced to 25 years in prison for fraud and other charges. Here is how the document states: 

“If it hadn’t been for the crimes of SBF for which he was convicted – namely theft and misuse of customer assets – customers would today be in possession of their cryptocurrency investments”

The misfortune among misfortunes, in fact, lies precisely in the fact that FTX filed for bankruptcy in 2022, in the midst of the “long crypto winter”. Customers lost the opportunity to see their investments grow thanks to the bull run of the past year. 

Just think that BTC was worth the minimum of $16,000 in November 2022, against the current $65,000, and therefore there has been a price increase of over 4x. 

The sales of Solana (SOL)

At the end of last month, news had leaked that the bankruptcy trustee of the FTX group had put several SOL up for auction at a heavily discounted price.

There is talk of an overall sale of SOL amounting to 2.6 billion dollars, even though the purchase price is significantly lower than that of the Solana crypto.

To give an example, on a purchase price of $100, the bankruptcy process of FTX auctioned SOL tokens at a price of $165

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.