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.
The post FTX Creditors Could Recover up to 40% of Their Funds, Says Jefferies (Report) appeared first on CryptoPotato.
