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.
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Source: https://cryptopotato.com/ftx-creditors-could-recover-up-to-40-of-their-funds-says-jefferies-report/