Blot look in FTX

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Aug 6th, 2022
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How to blot look in FTX

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welcome back to Fast Money More Fallout today in the wake of ftxamp;#39;s collapse crypto lender blocked by preparing to file for bankruptcy this ing to the Wall Street Journal blocked by acknowledged it has quote docHub exposure to FTX in a blog post yesterday months after receiving a bailout from the crypto exchange today at the CNBC technology executive Council I had a chance to sit down with former treasury secretary under President Trump Stephen mnuchin I asked him about the crypto landscape and his own dealings with FTX in particular FTX we looked at investing twice in past both times but you know I do think the underlying technology of blockchain has very interesting implications if you separate it from the issue of you know an asset class well I kept pressing him he talked a little bit more about his second encounter with the company I will tell you the second time we looked at it it was five times the valuation of the first time and uh you know we were a bit surprised at

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The FTX scandal was allowed to happen because its young and charismatic founder exploited the flashy new cryptocurrency industry to mask what was essentially old-fashioned embezzlement, in which he stole billions of dollars from investors.
FTX now says that 98% of its creditors, including individual investors who had US$50,000 or less with FTX, will receive the funds they lost. Payments will be made in cash within 60 days of a reorganisation plan going into effect. However, this plan still needs to be approved by a US bankruptcy court and by creditors.
FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.
Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago. FTX, which filed for bankruptcy protection in November 2022, said in a court filing Tuesday that between $14.5 billion and $16.3 billion would be available for distribution.
FTX crashed due to mismanagement of funds, lack of liquidity and the large volume of withdrawals. Binance announced it would buy FTX to prevent a larger market crash, but quickly bailed out of the deal as more news reports of mishandled customer funds surfaced.
Customers and creditors that claim $50,000 or less will get about 118% of their claim, ing to the plan, which was filed with the U.S. Bankruptcy Court for the District of Delaware. This covers about 98% of FTX customers.
What happened to FTX? FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which docHubed a two-year low on Nov. 9, 2022.
FTX founder Sam Bankman-Fried testified Friday that his largest mistake was not having a dedicated risk management team and a chief risk manager at FTX. The result was no oversight for the bankrupt crypto exchange.

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