After the cryptocurrency analysis platform Messari believes that FTX users could get 40%-50% of their deposits back, the US Wall Street investment bankJefferies Group yesterday (16)Day also said that FTX’s creditor withdrawal rate could reach 40%.
(Review:Messari: FTX users can get 40-50% assets back; FTX Bahamas entity files for bankruptcy protection in New York)
(background attachment:FTX Hearing “New CEO: Unable to recover 7 billion magnesium losses, SBF uses grocery store accounting software to manage billions of magnesium)
addThe collapse of the cryptocurrency exchange FTX has left users in a situation where they cannot withdraw money Many organizations have predicted the proportion of users withdrawing money Former cryptocurrency analysis platform Messari believes that users of FTX can take 40%-50% of Yesterday (16), a well-known American investment bankJefferies Group believes too The withdrawal rate of FTX creditors (including investment institutions and consumers) can reach 40%. This is undoubtedly a blessing in disguise for FTX creditors.
According to foreign media reports, the main current factors affecting the withdrawal ratio of FTX users are FTX balance sheet updates and unknown bankruptcy administrator fees. Although Jefferies thinks FTX creditors can withdraw up to 40% of their money.However, the agency emphasized thatOnce the bankruptcy administrators (bankruptcy administrators) charge high fees, the withdrawal rate may be reduced.
FTX asset liquidator: bankruptcy management fees can reach 500-1000000000 US dollars
Compared to an asset balance of $2 billion to $4 billion, FTX’s total liabilities appear to be between $10 billion and $13 billion, Joseph Femenia, FTX’s head of global distressed assets, said in an interview. therefore,Femenia believes that the creditor withdrawal rate is between 20% and 40%, and based on the status quo, a team of five people is assigned to study FTX full time.
The fees that need to be paid to bankruptcy administrators mainly include stranded assets and the 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. He estimates that the potential net recovery rate for FTX creditors could range from 10% to 35%.
Similar events have occurred in history. In the Madoff investment scandal in 2008, although more than US$14.5 billion was recovered in the end, the cost of recovering the money was as high as US$1.6 billion, and the final investor group paid the fee.
Wall Street Investment Bank: Facilitated Multiple FTX Bond Transactions
Because the bankruptcy liquidation process often lasts for several years, and not all investors can withstand the use. Selling the rights of creditors and surviving with broken arms was their only option and such behavior is not uncommon in traditional financial markets.
Founder of Jefferies Thomas Brazil He said that they have completed a number of transactions at this time or are close to completion. 507 Capital, a distressed asset acquisition firm, bought a large amount of FTX bonds from consumers at a price of 5% to 6% of the book balance.
Further reading:Bad debt investors are frantically buying FTX debt! 507 Capital had a balance of tens of millions of dollars with a “5% offer”
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