The Shocking Value of Stuck Funds Revealed on Crypto Platforms! 💥
Helping EVERYONE to make better crypto investment decisions.
👇 1) Hundreds of billions of dollars disappeared from crypto exchanges, platforms, and service providers last year. The roadmap was, unfortunately, always similar.
👇 2) Those service providers collected a lot of retail crypto deposits. They lent them basically to two trading desks: Alameda Research and Three Arrows Capital – both engaged in leveraged bets that required top-up positions with large margin calls when prices declined. It was the margin call that caused Bitcoin to crush from 30k to 20k that brought down the industry.
👇 3) Those institutions could not borrow additional money, so the whole crypto ecosystem was crushed down. Shockingly Alameda appears to have deployed $8bn of FTX user funds near the top of the market in Q3 2021 when Ethereum traded around $3,500.
👇 4) You can read about the events of 2022 and what Alameda did in my book ‘Crypto Titans’ available on Amazon and other booksellers.
https://amzn.to/3WJMuCQ
405 pages!!! Covering all the major crypto events from 2009 to Q1 2023.
👇 5) Since the first crypto firms defaulted, we have been in touch with sellers of ‘claims’ and have cross-reference checked with several sources, and the latest indications are that Voyager users might get back 40% of the value of their assets, Genesis 39%, FTX 28%, Celsius 22% and BlockFi also at 22%.
👇 6) There are renewed concerns about Celsius’ Fahrenheit deal as the consortium called Fahrenheit was expected to buy Celsius Network. The acquisition was previously valued at $2bn but there seems to be some hiccups now.
👇 7) Of note is that FTX claims have slightly rebounded from the low 20s after the U.S. IRS filed 45 claims totaling $44bn against FTX entities in unpaid partnership taxes, $20.4bn of those against Alameda.
👇 8) The new FTX management has so far recovered $7bn in liquid assets. FTX owns its customers $8.7bn at the time of the bankruptcy filing last year with $6.4bn of that total being fiat currency and stablecoins being misused. Still only 28% is priced in to be returned to users.
👇 9) Mt. Gox creditors are still waiting to get their money back, after nearly 10 years with the first funds expected to be moved this year. Back then Bitcoin prices were just $500 but holding onto the claims of last year’s bankruptcies might be costly because of the opportunity cost.
👇 10) Galois Capital, a crypto hedge funds once ran $200m but closed after 50% of their assets were stuck on FTX, sold those claims on FTX for 16% (16 cents on the dollar) in February 2023.
💥 Of course, the claims depend on the type and quality of the debtor and the size. If you are interested in selling claims, let me know...
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Book: “Crypto Titans” Available on Amazon: https://amzn.to/3WJMuCQ
#ftx #genesis #blockfi #celsius #voyager
