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A venture led by a former FTX executive has effectively secured $60 million in bankruptcy claims from affected users.
FTX Creditor primarily assists users with claims of up to $100,000. Social media has praised it for its rapid transaction capability, completing processes in as little as 30 minutes.
In the aftermath of FTX’s collapse in November 2022, Louis d’Origny, alongside former FTX executive Ramnik Arora, saw an opportunity to transform the crisis into a profitable venture. The pair launched several investment funds and the FTX Creditor platform to acquire bankruptcy claims from other users caught in the exchange’s downfall.
The venture began by accumulating about $31 million in claims through the funds and expanded its operations with FTX Creditor, bringing the total to an additional $60 million in claims. While initial estimates suggested that creditors might recover only 25% to 30% of investments, the strategy allowed for purchasing claims at significantly lower costs, hinting at potentially higher returns for investors.
In an interview with Bloomberg, D’Origny notes the enthusiasm among customers receiving the reimbursements, many of whom are eager to reinvest in crypto. Arora, who has not been accused of wrongdoing, played a crucial role in engineering the FTX Creditor platform.
The collapse of FTX left over a million customers worldwide facing significant financial losses. The former CEO and Founder, Sam Bankman-Fried, was found guilty on multiple counts of fraud and money laundering and currently faces 40 to 50 years in prison.
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