There is hope for FTX creditors, but according to sources, the recovery process could take up to 2 years.
The new FTX CEO has filed evidence to show the discovery of almost two-thirds of lost funds.
The New York Post reports that actions of the new leadership of FTX have reignited hope among the creditors of the now-bankrupt crypto exchange over the recovery of their funds. While recent developments generate optimism, the report says it may take as much as two years before making such repayments.
According to the report, there is a chance that between 50% to 70% of lost funds may be recoverable. This hypothesis comes from some recent actions by the new CEO of FTX, John Ray.
Ray is reported to have filed some paperwork in court reporting the discovery of up to $5 billion out of the total $8 billion lost by Sam Bankman-Fried’s FTX. The funds discovered so far are said to be liquid assets.
Although the total value filed by Ray is $5 billion, determining what the same discovery will amount to at the point of distribution could be difficult. That especially concerns investments in illiquid crypto or venture capital.
Considering the nature of such assets, customers waiting for reimbursement may receive less value when the time comes. It all depends on the market condition at that time.