In a contentious flip of occasions surrounding FTX’s chapter case, BitMEX Research has forged doubt on claims made concerning the credit score cost facilitated by Sam Bankman-Fried’s investments. The standard crypto trade’s analysis wing has slashed the claims of FTX creditor reimbursement being made by way of SBF’s investments by Alameda.
BitMEX Reveals Actual Reason Behind FTX’s Successful Compensation
The dispute arose following a report by Puck, highlighting Sullivan & Cromwell’s submitting of a draft reorganization plan aiming to reimburse clients and collectors with a surplus. Moreover, FTX seeks to supply a reimbursement of $15 billion, which is considerably increased than the declare of $12 billion. This compensation was allegedly doable resulting from investments orchestrated by Bankman-Fried by Alameda.
However, BitMEX Research has challenged this assertion. It attributes the obvious reimbursement to a market downturn triggered by FTX’s failure, moderately than the success of Bankman-Fried’s “great” investments.
“The reason that customers got ‘all of their money back’ was because the mark price of customer assets at the bankruptcy point was low, because the FTX failure caused a price crash. Not because of the great investments made by Sam,” BitMEX Research countered in a publish shared on X.
Moreover, the stark disparity between the FTX declare window pricing and present market charges helps BitMEX’s stance. The FTX declare window launched in March 2024 confirmed considerably decrease pricing with figures standing at $16,871 for BTC, $1,258 for ETH, $16.24 for SOL, and $286 for BNB.
Hence, the bankrupt crypto trade attracted huge backlash for the transfer. Currently, the prevailing market charges are $63,028 for BTC, $3,028.51 for ETH, $153.21 for SOL, and $594.76 for BNB. Furthermore, trade individuals raised issues in regards to the equity and transparency of the chapter proceedings.
Also Read: FTX Creditor Wants Debt Repayment In Crypto Instead of USD
Liquidation Spree Continues
In April 2024, FTX and its affiliate Alameda Research underwent substantial liquidation of their cryptocurrency property, totaling $98 million. Notably, the bancrupt FTX trade opted to promote its Solana (SOL) holdings to repay its shoppers. Moreover, it may probably keep promoting stress sooner or later.
Arkham Intelligence, a blockchain analytics agency, reported that wallets linked to FTX and Alameda Research initiated liquidations amounting to $97.35 million previously month. FTX’s portfolio contains $33.85 million in BOBA and $11.22 million in ETH, alongside controlling over 78% of the FTT provide. Conversely, Pantera Capital absorbed a good portion of FTX’s Solana holdings.
Meanwhile, Alameda Research maintains substantial positions in varied property, equivalent to $140 million price of WLD, $102 million of BIT, $93 million of BTC, and $48 million of STG. Furthermore, there’s a threat of those entities divesting their stakes shifting ahead as a result of chapter liquidation plan.
Also Read: FTX And Alameda Sold $98 Million In Crypto, More Selloff Coming?
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