FTX creditors got paid back 119 cents on the dollar and still lost most of their money. A bankruptcy rule from 1978 decided who captured the difference, and the answer was Mubadala and Jane Street. When a company enters Chapter 11, Section 502(b) of the bankruptcy code converts every claim into dollars at petition-date prices. FTX filed on November 11, 2022, with Bitcoin around $16,000. If you had 1 BTC on the exchange, your claim became $16,000 forever, regardless of what Bitcoin did…

Watcher.Guru@WatcherGuru22h ago

If Sam Bankman-Fried's FTX didn't liquidate its investments following the collapse, it would still hold: • Solana: $7.0 billion (35x) • SpaceX: $15.1 billion (75x) • Cursor: $3 billion (15,000x) • Robinhood: $6.7 billion (11x) • Anthropic: $170.5 billion (340x) • Genesis Digital: $3.5 billion (3x) Estimated Portfolio Value: $206,000,000,000