BitMEX Disputes FTX Over Creditor Payment Via Sam Bankman-Fried’s Investment
In a contentious turn of events surrounding FTX’s bankruptcy case, BitMEX Research has cast doubt on claims made regarding the credit payment facilitated by Sam Bankman-Fried’s investments. The popular crypto exchange’s research wing has slashed the claims of FTX creditor repayment being made via SBF’s investments through Alameda.
BitMEX Reveals Actual Reason Behind FTX’s Successful Compensation
The dispute arose following a report by Puck, highlighting Sullivan & Cromwell’s filing of a draft reorganization plan aiming to reimburse customers and creditors with a surplus. Moreover, FTX seeks to offer a reimbursement of $15 billion, which is significantly higher than the claim of $12 billion. This compensation was allegedly possible due to investments orchestrated by Bankman-Fried through Alameda.
However, BitMEX Research has challenged this assertion. It attributes the apparent reimbursement to a market downturn triggered by FTX’s failure, rather than the success of Bankman-Fried’s “great” investments.
“The reason that customers got ‘all of their money back’ was because the mark price of customer assets at the bankruptcy point was low, because the FTX failure caused a price crash. Not because of the great investments made by Sam,” BitMEX Research countered in a post shared on X.
Moreover, the stark disparity between the FTX claim window pricing and current market rates supports BitMEX’s stance. The FTX claim window launched in March 2024 showed significantly lower pricing with figures standing at $16,871 for BTC, $1,258 for ETH, $16.24 for SOL, and $286 for BNB.
Hence, the bankrupt crypto exchange attracted massive backlash for the move. Currently, the prevailing market rates are $63,028 for BTC, $3,028.51 for ETH, $153.21 for SOL, and $594.76 for BNB. Furthermore, industry participants raised concerns about the fairness and transparency of the bankruptcy proceedings.
Liquidation Spree Continues
In April 2024, FTX and its affiliate Alameda Research underwent substantial liquidation of their cryptocurrency assets, totaling $98 million. Notably, the insolvent FTX exchange opted to sell its Solana (SOL) holdings to repay its clients. Moreover, it could potentially maintain selling pressure in the future.
Arkham Intelligence, a blockchain analytics firm, reported that wallets linked to FTX and Alameda Research initiated liquidations amounting to $97.35 million in the past month. FTX’s portfolio includes $33.85 million in BOBA and $11.22 million in ETH, alongside controlling over 78% of the FTT supply. Conversely, Pantera Capital absorbed a significant portion of FTX’s Solana holdings.
Meanwhile, Alameda Research maintains substantial positions in various assets, such as $140 million worth of WLD, $102 million of BIT, $93 million of BTC, and $48 million of STG. Furthermore, there is a risk of these entities divesting their stakes moving forward due to the bankruptcy liquidation plan.
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