Crypto Chronicle w/ NewsCrypto
Welcome back NewsCrypto readers!
In today's edition of Crypto Chronicles, we are going to discuss the bankruptcy proceeding of FTX and the recent announcement they can repay all of the creditors with interest on top.
We are also going to cover the recent event in which Donald Trump said he supports Bitcoin and other cryptocurrencies unlike the current president Joe Biden.
Here's what we got on the menu today:
1. FTX Refunding Customers With Interest
2. Trump Supports Bitcoin and Crypto
3. Funny Meme
FTX Refunding Customers With Interest
FTX is making significant strides toward concluding the bankruptcy proceedings. The company has successfully gathered between $14.5 billion and $16.3 billion, preparing to distribute these funds to the creditors. This is a promising development for FTX customers and other creditors, who are collectively owed around $11 billion.
Distribution Plan Details
The proposed plan, if approved, will see 98% of non-government creditors receiving at least 118% of their claims in cash within two months. This means that some creditors, particularly those involved in crypto loans, could receive up to 142% of their claims. Additionally, certain creditors are expected to be paid in full along with interest on their claims.
Timing and Valuation
Despite the positive outlook, the distribution plan is still subject to court approval, a process that may take some time. Furthermore, creditors should note that the payments will be based on November 2022 prices, when Bitcoin was valued at approximately $20,000, far below its current value.
Settlements and Asset Sales
FTX's reorganization plan includes settlements with various entities, including the IRS, the CFTC, and the Department of Justice. The majority of the recovered funds have come from selling assets such as stakes in Anthropic and positions in Grayscale’s Bitcoin ETF.
Realistic Plan
John J. Ray, the current CEO of FTX, has expressed optimism about the proposed plan, highlighting the firm’s ability to repay its creditors. This marks a significant turnaround since Ray took over nearly two years ago, describing the bankruptcy as an “unprecedented” mess, even more challenging than the Enron bankruptcy.
Trump Supports Bitcoin and Crypto
In a recent event at Mar-a-Lago, former U.S. President and 2024 presidential candidate Donald Trump expressed strong support for cryptocurrency. Addressing a crowd of crypto enthusiasts, Trump lamented the current regulatory environment, which he claims is driving crypto companies out of the US. He vowed to change this stance if elected, aiming to foster a more welcoming environment for digital assets.
Donations in Crypto
Trump further showcased his support by indicating his openness to accepting campaign donations in Bitcoin and other cryptocurrencies. This stance marks a significant shift from his earlier skepticism towards digital assets and aligns him with the growing number of politicians recognizing the potential of blockchain technology.
Political Implications
The event also highlighted the growing political divide on crypto regulations. Trump criticized current US President Joe Biden and SEC Chair Gary Gensler for their perceived hostility towards crypto. This sentiment resonates with a broader trend where some members of Congress are increasingly supporting crypto-friendly policies, challenging their party lines to do so.
Funny Meme
