Reuters: Crypto exchange FTX ordered to pay $12.7 billion to customers
This is on top of the $11B Caroline Ellison was forced to surrender recently.
Which of course she doesn't have but that's another story.
FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy.
Ah well that's the rub isn't it.
As we all remember fondly it was the FTX collapse itself that marked the beginning of the end of the 2022 bear market in November. Right when it seemed like Bitcoin had a strong handle on the $20k previous-high support-line the FTX collapse brought it to the ultimate lows of $16k, with many calling for prices as low as $8k and the complete liquidation of Saylor's Microstrategy. Luckily that isn't a future we had to live in, as always tends to be the case at the bottom of the bear when everyone is losing their minds and selling the bottom.
Keeping in mind that the FTX bankruptcy was in fact the BOTTOM of the market it makes perfect sense that now that multiple years have passed and the value of those assets are multiples higher that they would be able to pay back creditors in USD terms as measured by the bottom of the bear. Speculators on social media have gone onto question if FTX was ever really insolvent to begin with in the light of this development, and there is a bit of valid argument that implies the company may have been strong-armed into their current position by higher powers and/or conservative lawyering.
Here's what I don't get:
There's now speculation as to what's going to happen in the market once these unsecured FTX creditors get their money back. For example, we all know damn well FTX didn't have ANY Bitcoin on the books and they were shorting BTC to the maximum. So unless they bought BTC after they went bankrupt... which they didn't... every user that owned BTC on FTX isn't going to be paid in BTC. So this "begs the question" in terms of pump and dumps. When MT GOX creditors got paid everyone worried they would dump... but when FTX creditors get paid they literally can't dump because there is no token to dump in the first place. There's also the question of whether "shitcoiners" have learned their lesson and will buy BTC instead of whatever they were holding when FTX went insolvent.
FTX’s $16 Billion Payout Set to Revive Crypto Market
One user disclosed that they had withdrawn most of their assets prior to FTX’s collapse, leaving only a small sum in Chainlink tokens. Significantly, they mentioned receiving a tax-related email, signaling that the distribution process is nearly complete. The user is now set to receive $289, which they plan to reinvest in Bitcoin, calling it “free money.”
Xremlin highlighted the distinct nature of this payout, noting that it restores money to those already involved in crypto. Many recipients are likely to reinvest, particularly in well-known cryptocurrencies like Bitcoin and Solana, which may drive substantial market demand.
expected to commence within two weeks
Yeah so obviously this is all speculation but it would very much seem as though this money is going to come pouring right back into crypto and potentially fuel a fresh rally and even a newfound alt market. There have been so many signals lately that we are headed into wildly bullish territory but the prices do not reflect this sentiment. This makes sense as we say goodbye to Q3, the worst quarter of the year, and say hello to Q4, the best quarter of the year. Prepare accordingly.
How's the TA lookin?
Whelp we are breaking above the 200 day moving average which is definitively bullish. We are also still printing the inverted head and shoulders that implies we'll be testing $72k resistance before October 12th. I've started day trading again for the first time since April and I'm trying to get an entry point of $61500. Thus far it feels like there's a good chance I'll remain sidelined on that front. Oh well these things happen.
Golden cross imminent
The default moving averages of 25/100 are now fully on a collision course for an epic golden cross at the perfect time. For the next 8 days the 25 day moving average will be dropping off price points of $58k and lower while being replaced at the current price point of $63k-$65k. We can see the light-blue 25 day line bending upwards at breakneck speeds into the slower moving 100-day that's still trading flat as a board. It looks like we could get our bullish cross in less than a week with this type of momentum.
The real alt market starts at $100k+
$100k has been a mythical price point that has seemed unattainable for so long, but it looks like we are about to blow past it within a few months time. As crazy as it sounds... Bitcoin going x2 from here is a $130k price point. How crazy is that? x2 is nothing in crypto and pressure has been building for 6 months within the current downtrend consolidation. Laser eyes are finally going to get their day in the sun.
Conclusion
It's crazy how MT GOX creditors had to wait a decade to get paid back and those payments were made in BTC, but FTX somehow regained solvency and is paying back their creditors in two years with zero BTC in their coffers. How wild is that?
We are about to blow past the $72k resistance barrier as we launch ourselves into the bull market year of 2025, and let's be honest we totally deserve it, as the crab market we just endured was nothing short of hellish purgatory. Congratulations boys and girls: we finally made it. Uptober is Uptobering. Pack up those moonbags.
Posted Using InLeo Alpha
Hard to think we started the year at 42k and we at only 65k... Let her rip already!!
Many are saying this is evidence of blatant manipulation because it "should have gone up more" but honestly how many people were waiting for all time highs again so they could dump? It is very commonplace behavior for there to be a transfer of wealth distribution at the top. It's just kind of mindblowing that people are so stupid that they would sell to Blackrock right out of the gate... or maybe it's not mindblowing at all that the serious grassroots Bitcoiners see this as hugely problematic and they want out before BTC becomes corrupted.
We can see that many long term hodlers have offloaded a lot of bitty at the top, so I don't think BlackRock et al have hypothecated Bitcoin yet. But Baldilocks did go down again today... There is no smoke without fire as they say.
Are ya on holiday again? :)))))
Having a posting break ❤️ 😉
Hehe, recharging batteries ;)
Yeah, busy with real life 😉❤️
If Coinbase has to halt trading on every 3% pump they are in deep shit.
Something tells me this is not the case.
This is I guess FTX US only, and only US custumers?
I am not a US citizen and I received emails from FTX. However, it's just dust remaining there. I pulled it before the collapse.
Interesting!
Good for you, for pulling up in time, and for whatever you get now.
Just have to go with your gut😉
I've never even heard of FTX US or seen it mentioned anywhere.
I don't see much information on it from Google searches either.
Surprisingly there is not much info on google.
However FTX had multiple exchanges, in multiple countries.
They all complied with local country rules.
FTX Japan was solvent from the beginning, as Japan required investors assets to be kept in different wallets, in cold storage, and to be audited by a government entity quarterly.
So the Japanese investors got their money back in 30 days.
FTX US was the US subsidery, which didn't offer any of the derrivative investments FTX was famous for worldwide.
Just an example of SEC rules.
Interestingly enough the CEO of FTX resiigned a few months before this implosian, after taking over the company and
From Investopedia:
FTX U.S. Derivatives was an exchange owned by FTX, the cryptocurrency exchange owned by Sam Bankman-Fried. Bankman-Fried was charged with and found guilty of several financial crimes after FTX declared bankruptcy in 2022.
It was created to be in compliance with US laws and excluded some of FTX's derrivative products and other staking prodicts the SEC frowned upon.
FTX was actually a huge number of country specific exchanges with an orgnization chart of some 134 compnaies.
An interesting story from Japan is that after the Japanese Mt Gox, Japan changed it's laws, so that investors funds can't be comingled with company funds, investopr funds have to be held offline in cold wallets, and this arrangement is audited quarterly by a government auditor.
The investors in FTX Japan got their funds back in about 60 days.
The delay was due to centralization in FTX which allowed one FTX exchange to turn off the software of every FTX exchange.
The FTX Japan was able to restore it's exchange by uploading their previous software from a company FTX bought and take control of the wallets.
I wrote a few articles on this back when it was fresh, because I thought it was a roadmap to safer centralized exchanges.
It was created to be in compliance with US laws and excluded some of FTX's derrivative products and other staking prodicts the SEC frowned upon.
FTX was actually a huge number of country specific exchanges with an orgnization chart of some 134 compnaies.
An interesting story from Japan is that after the Japanese Mt Gox, Japan changed it's laws, so that investors funds can't be comingled with company funds, investopr funds have to be held offline in cold wallets, and this arrangement is audited quarterly by a government auditor.
The investors in FTX Japan got their funds back in about 60 days.
The delay was due to centralization in FTX which allowed one FTX exchange to turn off the software of every FTX exchange.
The FTX Japan was able to restore it's exchange by uploading their previous software from a company FTX bought and take control of the wallets.
I wrote a few articles on this back when it was fresh, because I thought it was a roadmap to safer centralized exchanges.
Here is a list:
I would be very happy with 130, very happy.
I think it’s a little annoying and antithetical to bitcoin for these moon prices and shit, knowing that it’s insanely manipulated by the worst companies in the world. I don’t feel excited to sell bitcoin at the higher prices because it’s not going to good use or hands. Feels like it’s not the intended purpose of the asset but maybe I and many others are attaching a religious component to it or something.
I ended up cancelling my 100k order, I’m probably going to put one in for 150 and see what happens lol
It's very annoying and distressing but ironically this was always how permissionless economies were going to play out. People we don't like are going to adopt the tech and there's nothing we can do about it. That's just the nature of neutral infrastructure. We don't get to pick and choose and we can't gatekeep anything.
As far as the volatility is concerned that just stems from the market cycle, greed, and a lack of elasticity. I imagine crypto can only fix one of those things.
I can't like this comment enough.
You really don't think she has some secret stash somewhere that she is going to be able to pull from if she wanted to? Of course, she probably couldn't right away because it would be obvious she had a stash somewhere, but eventually... Through a third party ala a shell company. I mean what's a little more money laundering after everything she already did.
I hope both of them have secret stashes honestly.
And I hope they're able to keep those coins away from dirty government.
I wish them well on their journey.
The crazy thing is I bet SBF could have gotten a slap on the wrist as well if he had just accepted that he was completely fucked instead of trying to fight the DOJ; he really pissed them off lol.
yeah, that is a good point. I think they let a bit of hubris get to them.
And also what's up with Sam Trabucco?
Are they still friends?
Did they agree to cover up Sam's crimes so he could get away scot free?
Will Sam help SBF and Caroline financially when they get out?
It's all so batshit.
I was convinced this kid was dead for like a year.
lol
https://peakd.com/hive-167922/@edicted/-tabasco-has-resurfaced
Haha, just wait for the movie to come out!
It's also insane to realize that if that FTX document hadn't been leaked they probably would have completely gotten away with it and would still be in operation today. The only thing that crushed them was a temporary bank-run combined with bear-market volatility. Kind of mindblowing honestly.
Indeed. Probably gotta give some props to Twitter (wasn't it) for it spreading like wildfire.
Yeah one Tweet from CZ blew up the entire FTX platform.
Anyone that way paying attention had the chance to exit it was crazy...
Thanks CZ! :D
That's right, I forgot it was CZ. I remember they were saying he was doing it to get rid of the competition.
I think you are right.
SBF believed he could get investors to invest billions of dollars into his company, and that he only needed more time.
As hard as it maybe for us to believe now, he was such a venerated figure back then, that no one doubted he could raise the money, except his lawyers.
In intervews with various interviewers he states they (his lawyers) insisted he sign documents resigning from the company and turning over control to a legal firm.
He says they were NOT to use those documents, unless he told them to, because he thought he could raise the money.
He was famous enough and the world enmoured enough with him, that I think he could have pulled it off.
But his lawyers double crossed him to turn this into a lawyers feast of fees.
They have collected a record amount of fees billing by the hour for their services.
He asserts that he was surprised by the news announcements he had resigned.
He asserts that he was surprised that he was locked out of his own companies computers.
It was a huge clusterf--k
I agree. If they do disburse the money then it is very likely to be put back into the cryptospace. I'm here for it...will be a big boost
This is great news to so many people who lost so much money in this debacle.
I followed a series of videos published on twitter and YouTube by a investor tyrned sleuth, who interviewed SBF, you should google them, I think you will find support from SBF own words that he signed papers to relinghuish his company only if things got real bad, but the lawyers executed them and took all his control away.
This doesn't absolve him of guilt, but suggests a crook was robbed.
And as in the end usually, the lawyers won.
I'm a little excited about wildly bullish.
I guess there are many directions that will be fueling the coming or should I say expected bull market. About FTX, so many things from them has always been creepy from inception. Anyway, let them refund first
Exchanges are still lucrative... but why are you challenging binance?
It's all magic numbers and cooking the books!