NFTs
FTX claimants will get their Solana NFTs back – but FTT holders will get nothing
FTX’s bankruptcy estate announced Tuesday that creditors and customers will likely receive between $14.5 billion and $16.3 billion in total compensation — but that doesn’t include payments to holders of FTX’s ill-fated bonds. ITF symbol.
Once considered the exchange’s native token defunct on Ethereum, claims permitted in relation to FTT must be “cancelled or released”, a flat filed in the states of Delaware bankruptcy court. On the other hand, those with NFTs currently trapped on the FTX NFT platform due to the company’s collapse should receive the assets back.
About 98% of FTX creditors with permitted claims of less than $50,000 will also receive 118% of what is owed to them if the plan receives court approval. Based on the dollar value of cryptocurrency prices when FTX folded in 2021, the payment represents a small interest on top of the funds lost by customers 18 months ago, when cryptocurrency prices were generally much lower than they are now.
Lenders and customers who lost FTT in the FTX collapse were previously set to receive cash payments based on their holdings, according to an FTX report reorganization plan filed last December. The plan also stipulates that NFT-related claims will have their corresponding JPEGs returned.
FTX founder and former CEO Sam Bankman-Fried received a 25 year prison sentence in March, for stealing US$8 billion from customers, among other crimes. The disgraced crypto prodigy secretly siphoned billions of dollars from the stock market to buy real estate in the Bahamas, finance risky investments and accumulate influence through political donations.
The majority of Bankman-Fried’s wealth, which amounted to about $26.5 billion, was made up of ownership in FTX and FTT, according to Bankman-Fried’s profile on Forbes.
Among the NFTs impacted by the FTX collapse are Solana NFTs minted by the platform itself, including those offered by concert festivals Coachela It is Tomorrow’s landNBA star Steph Curry 2974 NFT CollectionIt is Formula One-themed NFTs from the Mercedes-AMG Petronas racing team.
FTT’s collapse is synonymous with the fatal crisis that destroyed FTX in November 2022. A report from CoinDesk revealed that Alameda Research, a trading firm owned by Bankman-Fried, held $4 billion in FTT on its balance sheet at the time.
After Changpeng Zhao, founder and then CEO of Binance, moved to sell of the exchange’s FTT holdings, the token plummeted, triggering a flood of investors withdrawing money from FTX. The failure to process withdrawals, which eventually forced FTX to admit that it did not have 1:1 reserves of client assets.
On the day FTX filed for Chapter 11 bankruptcy, FTT traded hands at $2.62, a 97% drop from its 2021 all-time high of $80.50. Jumping occasionally since So, based on bankruptcy-related commentary, FTT is currently worth $2.14, according to CoinGecko.
In addition to being used to inflate the balance sheets of Bankman-Fried’s business empire, the former crypto mogul leveraged FTT in some business transactions. This includes a $30 million payment made almost entirely from ITF to the former NFL star Tom Brady and his ex-wifesupermodel Gisele Bündchen, for appearing in several FTX commercials.
Edited by Andrew Hayward