February 3, 2023

FTX Creditors Could Recover up to 40% of Their Funds, Says Jefferies (Report)

How Wide Does FTX Contagion Spread? The Affected Companies So Far

The global investment banking firm – Jefferies Group – reportedly determined FTX creditors could retrieve as much as 40% of their lost money.

  • In an interview for The Block, Joseph Femenia – Global Head of Distressed Debt Trading at Jefferies – said there’s light in the tunnel for FTX creditors who could recover between 20% and 40% of their assets. 
  • The executive, who has formed a five-person team to work on issues related to the bankrupt exchange, explained that rates could change once there is new data about the balance sheet of FTX.
  • Femenia estimated that FTX owes between $10 billion and $13 billion to creditors. He outlined that between 5% and 10% of that amount needs to be paid to attorneys and relevant administrators so they can process the clients’ cases.
  • The executive reminded that victims of the multi-billion Madoff Ponzi scheme recovered over $14 billion but paid over $1.5 billion for administration fees (around 10% of the total sum).
  • Described by US prosecutors as “one of the biggest financial frauds in American history,” FTX caused a significant market decline and left numerous investors empty-handed.
  • According to court documents, the former crypto giant owes its top 50 creditors over $3 billion. Some of the prominent names with exposure to the bankrupt platform are Temasek, Tiger Capital, BlackRock, Thoma Bravo, Sequoia Capital, and more.
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

WP Twitter Auto Publish Powered By : XYZScripts.com
Billie Eilish family home burglarized in LA, suspect arrested Damar Hamlin is An American Football player inserted in Critical Condition Angelina Jolie claims Brad Pitt physically abused her and two of their children in 2016 amazing Story One of the greatest game player ever! Pele “The King” of football “RIP King” Rest in Power “Om Shanti” What The Seahawks Said Following Their 40-34 OT