After cryptocurrency analytics platform Messari believes FTX users can recover 40%-50% of their deposits, US Wall Street investment bankyesterday (16)Day also said that the withdrawal rate of FTX lenders’ funds could be as high as 40%.
(Recap:Messari: FTX users can recover 40-50% of assets; FTX Bahamas entity files for bankruptcy protection in New York）
(basic supplement:FTX Hearing “New CEO: Unable to Recover 7 Billion Magnesium Losses, SBF Uses Grocery Store Accounting Software to Manage Billions of Magnesium）
insertThe fall of cryptocurrency exchange FTX leaves users in limboThe dilemma of not being able to withdraw moneyAmong them, many institutions have made predictions about the rate of withdrawals by users.Crypto analytics platform Messari thinks FTX users could recover 40%-50% of their depositsyesterday (16), a well-known American investment bankJefferies Group also believes The withdrawal rate of FTX lenders (including investment institutions and users) can reach 40%. This is undoubtedly a blessing in disguise for FTX lenders.
According to foreign mediarelationshipthe main factors currently influencing the withdrawal rate of FTX users stem from FTX’s balance sheet update and the unknown bankruptcy administrator’s fee. Although Jefferies thinks FTX lenders can withdraw up to 40% of their funds.However, the agency stressed thatOnce the bankruptcy administrators (bankruptcy administrators) charge high fees, the withdrawal rate of funds can be reduced。
FTX asset liquidator: bankruptcy management fees can reach 500-1000000000 US dollars
Compared with an asset balance of between $2 billion and $4 billion, FTX’s total liabilities appear to be between $10 billion and $13 billion, Joseph Femenia, global head of FTX’s distressed businesses, said in an interview. therefore,Femenia believes that the creditor withdrawal rate is between 20% and 40%, and according to the status quo, a team of five people are assigned to study FTX full time.
The fees to be paid to the bankruptcy trustees consist mainly of stranded assets and salaries of lawyers and other personnel in the multi-year bankruptcy process.The Femenia team expects these costs to be between $500 million and $1 billion. It is estimated that the potential net recovery rate for FTX creditors could range from 10% to 35%.
Similar incidents have occurred throughout history: in the Madoff investment scandal in 2008, although more than $14.5 billion was ultimately recovered, the cost of recovering the funds was $1.6 billion, and the last group of investors paid the fee.
Wall Street Investment Bank: Facilitated multiple FTX bond transactions
Because the bankruptcy liquidation process often takes several years and not every investor can bear the consumption. Selling creditors’ rights and surviving on broken arms has become their only choice, a behavior not uncommon in traditional financial markets.
Jefferies founder Thomas Brazil stated that they have currently completed or are close to completing several transactions. 507 Capital, a struggling asset acquisition firm, bought a large amount of FTX bonds from users at between 5% and 6% of their account balance.
Further reading:Bad Credit Investors Frenzy Buy FTX Debt! 507 Capital Acquired Tens of Millions of Dollars Balance in ‘5% Offer’
