FTX Releases Latest Statement
FTX, the bankrupt cryptocurrency exchange, released a new statement on May 8th. The statement reveals that once all assets are sold, the company will have up to $14.5 billion to distribute, allowing 98% of creditors (users holding funds under $50,000) to receive 118% cash compensation by September, while some high-value creditors may receive 142% compensation.
It is important to note that the compensation tokens deposited by creditors are estimated based on the price of FTX’s bankruptcy date, November 11, 2022. Therefore, unless a large proportion of the assets held in FTX are stable coins or fiat currency, the actual compensation will still result in significant losses.
Impact on Steaker’s Compensation Situation?
After the news of FTX’s excessive compensation, discussions arose within the community regarding whether Steaker, the Taiwan-based digital asset management platform currently in the process of compensating its users affected by FTX’s closure, will be able to effectively reimburse the losses incurred by its users. Is there a possibility of receiving excessive compensation?
It is understood that Steaker’s main loss in cryptocurrency assets is stable coins, so receiving compensation of over 118% is good news for them. However, the question remains as to how Steaker will handle the remaining excessive compensation after compensating its users 100%. This leaves some uncertainty.
Steaker’s three-stage compensation plan, known as the Steaker Dawn Plan, was announced on December 6th last year. More than 70% of affected users have participated in the plan and have already received the first-stage compensation, which accounts for 10% of the total affected assets. The second-stage compensation is scheduled to be distributed quarterly starting from the third quarter of 2023.
Steaker Inc. will provide users affected by the FTX incident and unable to redeem their virtual currency originally invested on the Steaker platform with a 10% compensation based on the quantity of the currency delivered at the time of subscription.
Steaker Inc. will provide users affected by the FTX incident and unable to redeem their virtual currency originally invested on the Steaker platform with a second compensation of 40% calculated based on the quantity of virtual currency delivered at the time of subscription, in the form of an equivalent amount of USDC stable coins.
The expected sources of the second compensation are:
1) Virtual assets affected by NSCA.
2) SAFU assets.
3) Part of the profits from Steaker’s planned new business model.
If Steaker Inc. retrieves virtual currency returned by FTX in the future, Steaker will continue to compensate affected users up to 100% (excluding fees) after deducting legal and enforcement costs, as the third compensation.
FTX’s latest statement raises concerns about how Steaker will handle the excess compensation after compensating users 100%.