A crypto trader and marketing executive who correctly predicted FTX's collapse said the incident's creditor repayments

A crypto trader and marketing executive who correctly predicted FTX's collapse said the incident's creditor repayments coming

A crypto trader and marketing executive who correctly predicted FTX’s collapse said the creditor repayments coming a little over two years after the incident are a “win” — all things considered.

“I thought it would take longer, just because there's so many jurisdictional issues, you're working with so many different governments, different levels of enforcement, different levels of compliance,” Ishan Bhaidani told Cointelegraph’s Turner Wright in an interview at ETHDenver in Denver, Colorado.

“You're working with the Bahamas, FTX is multinational… and then obviously the US and a lot of money from US investors, so candidly, I thought it would take longer,” Bhaidani said.

All things considered, “I think two years is kind of a win,” said Bhaidani, one of the founders of crypto marketing firm SCRIB3.

The collapse of FTX is considered one of the biggest financial frauds in US history.

FTX was using customer money to fund investments at sister trading firm Alameda Research, which was illegal. When market prices fell, it triggered a liquidity crisis, preventing customers from being able to withdraw funds. The firm then filed for Chapter 11 bankruptcy on November 11.

FTX initiated its first round of reimbursements on February 18, with the next coming on May 30. Creditors eligible in the second round will need to verify their claims by April 11.

Under FTX’s recovery plan, 98% of creditors are expected to receive at least 118% of their claim value in cash.

Bhaidani, however, noted that it would be interesting to see whether those who bought claims from FTX creditors ended up on top or not.

“If you bought FTX claims, you're going to be in the clear. But if you bought crypto, it depends on which token. If you bought BTC, you're doing okay. If you bought ETH, you didn't do as well. You bought SOL? You did really, really freaking well, right?”