crypto genius riyyan

FTX Refund Update

The bankrupt cryptocurrency exchange FTX is in the process of refunding its creditors. According to recent updates, FTX has recovered a significant amount of assets to repay customers.[1]

Refund Amount and Distribution

FTX has announced that it will distribute between $14.7 billion and $16.5 billion to customers, which is approximately 118% of the value investors had in their accounts at the time of FTX's bankruptcy in November 2022.[2] The refund plan has been approved by a US court, and payments are expected to be made in fiat currency, not cryptocurrencies.[2]

Refund Timeline

The refund process is expected to begin with minor creditors, who are owed less than $50,000, and will likely be completed by the end of 2024.[2] Larger institutional creditors will receive their refunds in staggered installments.[2] The exact timeline for these refunds has not been disclosed.

Lawsuits and Asset Recovery

FTX has filed lawsuits against two companies, NFT Stars Limited and Kurosemi Inc., for allegedly failing to return digital assets as part of its recovery program.[3] The lawsuits claim that these companies owe FTX significant amounts of tokens, which were purchased through Simple Agreements for Future Tokens (SAFTs) by Alameda Research, FTX's affiliated trading firm.[3]

Global Settlement Agreement

FTX Digital, the main regulated entity of the FTX International Platform, has agreed to a Global Settlement Agreement (GSA) with the US Chapter 11 Debtors, which allows for the pooling of assets from both estates to enable FTX.com customers to receive the same recoveries.[4] The GSA also enables customers to lodge a claim in either the Bahamas Process or the US Process.[4]

Projected Returns

The projected returns for FTX customers are estimated to be in the range of 119% to 143% of claims.[4] This is a significant development in the FTX bankruptcy case, and customers are expected to receive substantial refunds.

The #FTXRefunds update today is that FTX is making progress in refunding its creditors, with a significant amount of assets recovered and a refund plan in place. The refund process is expected to be completed in the coming months, with minor creditors being paid first.

#FTXRefunds
#CEXvsDEX101

$BNB

Market Pullback Update

The S&P 500 index experienced a pullback in October 2023, with the index closing at 4,193.80, down 2.20% from the previous month  This decline continued the downward trend that started in August 2023, with the index falling 1.77%, followed by a more significant drop in September 2023, of 4.87% 

The market pullback was attributed to various factors, including Q3 earnings reports and guidance, which were not as strong as hoped for . Although 77.5% of companies beat earnings expectations, the guidance didn't appear to be as robust, leading money managers to take some profits off the table .

Other factors contributing to the market pullback include high bond yields, with the 10-year Treasury yield flirting with 5% for the first time since 2007 .This surge in yields has contributed to one of the worst periods for bond market performance in history and has pressured equity markets .

The Federal Reserve's stance on interest rates also played a role in the market pullback. Although the Fed is expected to keep rates steady for now, investors remain uncertain about future rate hikes.The labor market has remained stubbornly resilient, and inflation rates are still above the Fed's 2% target, leaving the option of future rate hikes on the table .

Geopolitical tensions, including the Israel-Hamas war and ongoing conflicts between Russia and Ukraine, as well as growing tensions between the US and China, have also contributed to investor uncertainty and fear .

Some of the biggest tech companies, including Tesla, Meta Platforms, and Alphabet, reported mixed earnings results, with some falling short of expectations [4]. This has led to concerns about the outlook for Big Tech and has contributed to the market pullback.

The S&P 500 is down 2.9% for October, and on pace for its third negative month in a row, the longest losing streak since the start of the pandemic in 2020 [4].

Key Statistics

S&P 500: down 2.20% in October 2023

Dow Jones Industrial Average: down 1.36% in October 2023

S&P MidCap 400: down 5.42% in October 2023

S&P SmallCap 600: down 5.83% in October 2023

The S&P 500 is down 2.9% for October 
#MarketPullback
#TradingTypes101