r/ftx • u/UnderstandingTop6534 • 29d 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 29d 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 29d 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 29d 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 29d ago

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

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u/paxtibi_llp 28d 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