Jefferies Group, a global investment banking firm, has reportedly assessed that FTX (CRYPTO: FTT) creditors could get back up to 40% of their lost money.
What Happened: Joseph Femenia, Global Head of Distressed Debt Trading at Jefferies, told The Block that creditors could potentially recover 20%-40% of their assets. Femenia has put together a team to work on getting creditors' money back, and he has stated that the numbers may even change based on the new data of the FTX balance sheet.
Femenia estimates that between $10 and $13 billion is owed to creditors by FTX. To begin processing the cases of these creditors, he outlines that between 5 and 10 percent of that amount must be allocated to cover legal and administrative costs.
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The shocking implosion of FTX has sent ripples of contagion through the entire crypto world. On Nov. 11, FTX filed for bankruptcy protection, leaving over one million creditors in a precarious financial situation.
Documents filed in court reveal that FTX's biggest 50 creditors are owed an astonishing $3.1 billion, a staggering figure that showcases the considerable fallout from the toxic collapse. Prominent names such as Temasek, Tiger Capital, BlackRock, Thoma Bravo, and Sequoia Capital are among the investors who now fear significant losses from the collapse.
Price Action: FTT was down 5.4% at $1.05 in the past 24 hours, according to data from Benzinga Pro.