FTX caused a lot of bad things and other issues at the end of 2022. Here in 2023, and unfortunately at the end of what will be called a big bad guy and bad guy in the economy of crypto continues to deteriorate. to break the gap with customers.
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FTX Customers May Not Get Their Money Back
Many analysts and traders suggest that the company’s employees will not get their money back. It’s true. Any money they lose due to their financial institution’s mistakes could be lost forever. Although not set in stone, it is suggested based on information from Mt. Gox famous fiasco that happened in 2014. In almost nine years (that happened in February 2014), Mt. Gox filed for bankruptcy after allegedly losing money.
$400 million in BTC coins, and the bankruptcy process is still going on today. This shows that filing for bankruptcy in the crypto space is a serious business. Many business owners believe that it will be a long time before FTX players find a single coin of their money, and that’s assuming they don’t find anything. Anthony Sabino, a law professor at the University of St. Johns, is convinced that although these customers will get some of their money back, they will never see their full amount again.
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He also said that many of the assets they store on the platform will see prices drop further as FTX films continue to take over space. In an interview he said:
People wait a long time on the sidelines, only heaven knows what it will be worth. It’s not good at all. One of the unique aspects of FTX is that as its liquidation process continues, agencies such as the Securities and Exchange Commission (SEC) are investigating the company. Joshua Peck – the alleged expert on the risk of crypto – says that although these investigations will not delay the cutoff, the judge in charge of the case will pay close attention to what has been revealed. He said:
I expect that FTX bankruptcy will take a decade or more for the process to settle the remaining assets and who owns them. Referring to Mt. Gox debacle to support his point, Peck said the company is another and something like FTX. He said:
Mt. Gox bankruptcy is the first thing here. The bankruptcy started in 2014 and is still going on. The problem started two months ago
FTX started having difficulties in mid-November. This led the company to seek help from Binance, which appears to be buying the company. That didn’t happen though, and FTX has fallen into oblivion.
