FTX Releases Latest Statement
FTX, the bankrupt cryptocurrency exchange, released its latest statement on May 8th. The statement highlighted that once all assets are sold, the company will have up to $14.5 billion to distribute. This means that 98% of creditors, who hold funds below $50,000, will receive a minimum cash compensation of 118% by September, and some high-value creditors may even receive 142% compensation.
It is worth noting that the compensation tokens deposited by creditors are estimated based on the price on FTX’s bankruptcy date, November 11, 2022. Therefore, unless a significant proportion of assets held in FTX are stablecoins or fiat currency, the actual loss will still be substantial.
Impact on Steaker’s Compensation Situation
Following the news of FTX’s excessive compensation, the community started discussing whether Steaker, the Taiwanese digital asset management platform currently compensating its users affected by FTX’s closure, will be able to fully reimburse its previous affected users’ losses. Is there a possibility of receiving excessive compensation for Steaker users?
It is understood that Steaker’s major loss of cryptocurrency assets is stablecoins. Therefore, receiving compensation of more than 118% is good news for them. However, there are concerns about how Steaker will handle the remaining excessive compensation after compensating users 100% for their assets, as stated in the compensation terms agreed upon with the users.
Three-stage Compensation Plan
Reviewing Steaker’s three-stage compensation plan proposed at the end of March last year, the third stage explicitly states that if the recovered cryptocurrency assets from FTX are obtained, a maximum compensation of up to 100% will be provided to affected users after deducting fees and legal administrative costs. Therefore, it is expected that Steaker will further compensate its affected users up to 100%, without exceeding the compensation limit.
However, FTX’s latest statement indicates that creditors may receive compensation ranging from 118% to 142% in cash, raising questions about how Steaker will handle the remaining excessive compensation after compensating users 100%. This has left some uncertainties.
Steaker’s three-stage compensation plan, named Steaker Dawn, was announced officially on December 6th last year. Over 70% of affected users have participated in this plan, and they have already received the first-stage compensation, which accounted 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 affected users who were unable to redeem their original virtual currency invested in the Steaker platform due to the FTX incident with a compensation of 10% based on the quantity of the cryptocurrency delivered to Steaker at the time of subscription.
Steaker Inc. will provide affected users who were unable to redeem their original virtual currency invested in the Steaker platform due to the FTX incident with compensation equivalent to 40% of the quantity of the virtual currency delivered to Steaker at the time of subscription, in the form of USDC stablecoin.
The sources for the second compensation are expected to be:
1) Virtual assets affected by NSCA.
2) SAFU assets.
3) Partial 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 recovery and legal procedure costs as the third compensation.
Related Reports:
FTX Compensation Progress: 98% of Creditors to Receive 118% Cash Repayment! First Payments Expected Before September
Chainsight Analysis: Did Taiwanese Steaker Put 83% of Customer Funds in FTX? A Total of $40 Million?
FTX Repayment Update! First Compensation to be Made by “End of 2024”, Credit Registration Extended until June 30th.