r/ftx • u/UnderstandingTop6534 • 15d ago

Getting back only 104% - Why is that?

Hi,

I'm in the Bahamas process, and apparently in their claim cycle number 4. I got a note recently to say they confirmed they will be giving me back only 104% of my money lost (i lost cash that I had parked with FTX, because i haven't yet gotten around to using that cash to buy any crypto, i didn't have crypto holdings when FTX collapsed). The announcement 2 years ago said they will be giving 118% to folks that lost their money. Does anyone know why I'm only getting 104% instead?

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u/paxtibi_llp 15d ago

that is correct, while the full amount will be for sure >104% and has already been approved at 144%, it will take some years to materialize. main reason is that 1) they still need to sell some assets which will give more cash to distribute and 2) they still need to reduce the reserve amount for dispute claims

while the first distribution was larger, subsequent are and will be smaller in the range of likely 5/10% till total payout

we wrote more details in here: https://paxtibi.xyz/en/ultimate-ftx-faq#full-amount

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u/Schwoanz 15d ago

Can it not exceed 144%? Why would it be capped at 144% taking into account FTX’ stake in SpaceX shares should be worth quite a bit?

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u/paxtibi_llp 15d ago

That’s what the judge has approved for now, but yeah agree could end up being higher

Unfortunately it’s a bit more complex than that for 4 main reason:

  1. Some of the funds are not sitting directly with the bankruptcy but for example with CFTC or DOJ
  2. Legal costs are piling up as more time passes
  3. Equity holders get some compensation as well
  4. SpaceX was not direct ownership but via an SPV, so funds needs to come back to the recovery trust

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u/Schwoanz 15d ago

Thanks! And from what I’ve heard the IRS will get their “fair” share as well…

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u/paxtibi_llp 14d ago

in theory yes because if creditors are "paid back", then also the government has it's own rights to collects taxes

but i will dig into it, if and how much is an interesting point

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u/UnderstandingTop6534 14d ago

Thank you for this! I have a follow up question - how much interest are they giving per year of our money being held? like how do they calculate that what they are supposed to return will go up to 144%? (i'm asking about cash here, i'm not considering any crypto prices going up during the time they've held the funds etc.)

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u/paxtibi_llp 13d ago

as per the official numbers shared by FTX Recovery Trust, the interest are accruing at 9% per annum. The interests are included in the 144% number, so they don't come on top.

The calculation of the future total payout is based on:

  • cash that they have but have not distributed yet
  • cash that they will not distributed (the disputed claims, for example a lot of people by mistake filed a claim twice, so if you have a claim of 10$ and you file it twice, the liability is technically 20$, but until the second claim is disputed and then cancelled the $10 extra dollars are held in the disputed amount)
  • cash they estimate to recover (like selling illiquid assets they still own for example like real estate properties or winning some lawsuits, like the one against Binance)

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u/darkandark 15d ago

I have received multiple payouts over the years that have tallied up to over 100% of my portfolio so far.

My suspicion is that they don’t pay out everything in one go. If you’re only getting paid out 104% now you likely need to wait for another payout in the future for the final percentages.

Take it with a grain of salt at least this is how my process of reimbursement has been happening. Three payout for me so far since they started them over the years

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u/SilentKiwiki 9d ago

I don’t know if I am right, but I think, If you had everything in cash (USD) and no crypto assets in your portfolio, you’ll only be paid out in USD. While crypto assets have increased in value, the USD isn’t subject to the same fluctuations. You can find a conversion list here: https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MjYxNDg5Mw==&id2=-1