How FTX Creditors Are Getting Screwed (Again) By LOWERING Crypto Prices

How FTX Creditors Are Getting Screwed (Again) By LOWERING Crypto Prices
➡️ Check out Claims-Market: https://claims-market.com/ if you want to sell your FTX claim.

Timestamps:
0:00:00 Intro
0:00:22 SBF’s March Trial Has Been Dropped
0:00:52 People Are Rewarded For Holding Horrible Coins
0:01:41 November 11 & CoinMetrics
0:02:28 Objection Deadline
0:02:37 Lowering Crypto Prices For Liquidation Estimates
0:04:21 FTT Claims Are Valued At $0
0:05:26 Some Assets Were Marked To $0
0:05:45 She Doesn’t Share Coins With 0%-10% Liquidation Discounts
0:06:30 Coins Marked Down The Most
0:07:09 Claims-Market
0:08:18 How They’re Adjusting Prices
0:09:11 Sharing Coins With Greater Than A 10% Discount
0:10:20 Solana At $16
0:10:55 Objections
0:11:28 Why Do They Want To Lower Everyone’s Claim?
0:11:55 FTX Did NOT Liquidate Everything
0:12:36 Conclusion

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Disclaimer: Nothing said on this video should be interpreted as legal advice!

#ftx #sambankmanfried #celsiusnetwork

Hey what’s up guys Aaron here so FTX creditors are getting screwed in multiple ways I’m going to cover exactly what’s happening with how the assets are being valued not only are assets being valued at the very bottom of the bare Market but some assets are even being

Lowered more than that which I think is really really crazy also Sam bankman Freed’s trial has been dropped in March which is nuts so he’s not going to be charged with unlawful campaign contributions and also he’s not going to be charged with this conspiracy to bribe Chinese officials so that’s another way

That FTX creditors are kind of getting screwed right now a lot of people want Sam to get charged with everything especially if they lost money in FTX so I took some snapshots from all the documents that came through about how they are valuing the crypto assets but

What I want to first start out is right here a crazy example so we have Bitcoin at 16,8 71 bucks super super low bottom of the market eth is at $1,200 soul is at $16 but get this guys so if you held 1,000 OMG tokens on FTX when they went

Bankrupt you would be getting a claim of $1,230 because FTX is valuing OMG at $123 per token but guess what guys the current price of OMG is 83 so basically if you held a shitcoin that went down in value since the bottom of the bare Market you are going to be

Made more whole on your claim than somebody that literally held higher performing assets like Bitcoin or salana so the date they are taking the snapshot from is November 11th at around 10: a.m. eastern time so they used coin metrics as a way of compiling and getting the

Best most accurate price for these coins the guy from coin metrics has a 54 page document going over exactly how he did this which is very confusing very overwhelming and it’s just a lot of information here so what’s interesting is that they are throwing in all these fancy math equations but with the

Celsius bankruptcy they did none of this they said the price of the coins and that was it only cell token was contested everything else was not so a lot of people are going to be objecting to how they value these coins a lot of people will be in my opinion so we have

The object deadline for January 11th and then this will either be confirmed or denied on January 25th so the person who did this analysis is Dr Sabrina Howell so she analyzed and determined whether adjustments needed to be made to those petition date prices due to the likely

Effect of an orderly liquidation so the big issue right now is that there are a lot of tokens which I’ll get to in just a sec that she lowered the price of beyond the bottom of the bare Market market for most of these coins because they didn’t have a big Market or she

Tried to project what it would look like if they actually did a liquidation she says that in an orderly liquidation certain of these coins would have been sold at average prices below the market prices so we’ll get to this later in the video but basically her job from FTX was

To project the price of all of these coins if they liquidated everything on the day of petition but the weird thing is they did not liquidate everything on the day of petition so why are they trying to lower the price of these coins it’s such a weird thing that they’re

Doing which again I’ll touch on later in this video as well so she talks about different discounts for coins that could not be marketable like locked tokens she then talks more about ftt and she says it is seen as equity and therefore those claims have no value so she is

Calculating discount basically saying that these assets are worth less than they were on the actual petition day for 107 out of the 1,322 unique assets she basically says here that there’s no discounts for Fiat stable coins Futures leveraged tokens and tokenized stocks so moreon ftt which

Does suck in my opinion for people that held ftt and I don’t think this is appropriate in my opinion but 416 million in ftt and $310 million in FTX Equity claims she is saying that the fundamental value of these assets is zero now Equity I get Equity is

Something where if the business fails you’re not going to get anything but holding ftt token I find very interesting because there’s a lot of correlations here with cell token in Celsius now they finally agreed on a 25 cent cell token but had this woman evaluated sell token my guess is she

Would have said it is valued at $0 now there are probably going to be people that say ftt should not be valued at zero there’s $416 million of claims held in ftt so probably people are going to argue that point she’s also treating staked tokens the same as wrapped tokens

And those will just get the same discount as the underlying coin here she says that some assets were marked to zero if there was no reliable Market to sell them so basically if there was just no volume and no Market she says that if they tried to liquidate they would have

Gotten $0 and therefore she is giving certain coins and assets 0 worth of value which I’ll cover a little bit later so here 408 coins have asset liquidation discounts but the issue which I man there are so many issues in this she actually doesn’t even share

Which coins have between 0 and 10% asset liquidation discount accounts only the coins that have over 10% there are so many issues with this and I it’s just crazy so she would give some of these discounts because the size of the positions that FTX had was just too big

And therefore counterparties would have bought it for cheaper due to the blockchain’s transparency or here the debtors held more than the daily average trading volume of the asset so therefore if they tried to liquidate the price of that coin would be pushed down a ton so here we go into the actual discounts

Here are the top five digital assets with the highest asset liquidation discounts so we have serum Maps oxy media and Boba and here you can see some are marked down 58% maps and oxy are basically being wiped out getting a 100% discount there was 50 to about 80 pages

Of just complex math and Theory to justify their prices and I just took two little snapshots for you guys and I’m thinking to myself with blockfi and Voyager and Celsius they didn’t have to do any of this and it’s interesting that FTX decided to do this and I want to

Take a quick pause talk about the sponsor of this video which is claims market now claims Market is a marketplace where buyers will compete to give you the best price for your FTX claim so takeing look at the prices of claims right now they are still at the

Highest they have ever been between around 68 to 73% of your claim now the exact price will depend on things like your jurisdiction definitely if you have clawback exposure what coins you held Etc especially now knowing that some coins will be marked down that will affect how much they will buy your

Specific claim for as well so I’m definitely not encouraging you or telling you to sell your claim but it is something that a lot of people have decided to do because they’re just tired of being tossed around like a ragd doll where their claim all of a sudden got

Valued less because FTX decided that if they liquidated that asset it would be worth less and people are just tired of it or they just need the money so claims Market is where you want to go if you have any questions about selling your claim or you just want to inquire about

The process so I’ll include the link below for you guys and now let’s get back to the video so this is a little chart showing how they decide to adjust prices so Master pricing data set this is going to be the price of the token on the day of the bankruptcy petition so

Everything from Fiat stable coins non-marketable assets all the altcoins equity leverage tokens tokenized stocks spot derivatives and Futures all used the price on the day of bankruptcy which was November 11th 20122 some crypto tokens non-marketable assets and FTX Equity claims and ftt went through the asset liquidation discount non-marketable assets like staked assets

And ft went through an additional adjustment discount for lack of marketability like you could not sell it on the open market and finally FTX equity and ftt got marked down to zero so next she gives a couple charts now this is another issue I have these are assets with asset

Liquidation discounts greater than 10% so there are a few pages of different tokens most of these are pretty small not huge tokens there are some that are recogn iable but these are not going to be like major major tokens and you can see here on the right just what size of

A discount they gave to these tokens the issue is that these are only tokens that have a discount greater than 10% and this is what’s really frustrating to me is that they do not share all the different tokens that had a smaller percentage discount so here they give

The asset prices right they give all of the prices for all of the assets all of the crypto assets but again we do not know what percent if any for these crypto tokens were marked down unless it was over 10% and that is really really weird and deceptive and you would

Actually need to go and look yourself for each asset to see oh is it less than the day of bankruptcy petition or not a lot of people are going to have a huge problem with salana being $16 I mean wow that is like I don’t know a five or 6X

Less than it is right now now a few days ago it was like an 88x less than it is right now so people that held salana on FTX are getting absolutely screwed versus again people that held a coin like OMG which has actually gone down since the bankruptcy petition and I just

Picked OMG out of nowhere I just found one and searched it and it just happened to be less than what is going to be marked for your claims so guys that’s basically it if you are an FTX creditor make sure to subscribe you can tell I am

Cutting out all the fat in these videos and I just want to give you exactly what you need to know so basically we have another week and a half or so for objections to roll in and I expect a lot of objections to roll into this there

Are so many issues that I can see with what they did here because they didn’t actually liquidate every coin on the day of the bankruptcy petition but FTX wants to lower everybody’s claim as much as legally possible I guess now why do they want customer claims to be lowered as

Much as possible I don’t know there’s a whole waterfall of distributions and maybe they want more value to go to other entities other people not customers and that sucks that super super sucks so I expect a lot of objections to flow in over the next week

And a half or so because this really really sucks for a lot of people and I don’t think it’s fair now if FTX actually liquidated everything on the day of the bankruptcy petition which I don’t believe they did they still have a lot of crypto maybe a coin that FTX held

So much of the trading volume that there would literally be no way to sell that coin maybe I can see marking that coin down maybe but they are changing basically the bankruptcy rules here they are basically saying we’re not just going to take a snapshot we’re going to

Do hundreds of pages of math and justification to lower the prices of everybody claim because remember they’re not increasing the price of any coin they are only lowering the price of the coins so guys thanks for watching the video check out claims Market if you would like to inquire about selling your

Claim and maybe looking at options for getting liquidity immediately if you want to take that money invest it into crypto or do whatever you want with it this process is going to take months and years to play out maybe people will get some money back at the end of 2024 I see

It going into 2025 we really really do not know so thanks for watching guys till next time talk with you soon and bye for now