Hacker News Reader

Comment by yieldcrv | Hacker News Reader

its amazing that the American system is resolving FTX almost within 2 years, in comparison to the Japanese system

says a lot about the two economies and their entire ethos

It should be noted that the American system also does not give FTX creditors this kind of windfall - under US bankruptcy law, their claims were effectively converted to dollars at the time of the bankruptcy, and they see no benefit from increased crypto prices since then. I'd assume this simplifies administration a lot, contributing to a faster resolution, but many FTX creditors are unhappy about it: https://www.wired.com/story/ftx-creditors-crypto-payout-reje...

It's weird that people who had dollars on FTX can get 118% back but crypto "has to" take a massive haircut.

Generally, you're not entitled to potential losses as a bankruptcy creditor.

Those creditors were welcome to sue the entity in bankruptcy for their potential losses, but that would involve demonstrating they'd have had the wherewithal to hold to the point of the gains they're claiming.

I do think that FTX creditors should not have profited out of the bankruptcy proceedings, either.

This is what initially happened with MTGox as well. The subsequent increase in value complicating things is a large part of why the MTGox resolution has taken so long. The original plan to reimburse the yen value of claims at the time of collapse was no longer a fair solution. The payout due now was proposed and voted on by the claimants. The process has been slow but very methodical, at each stage there were long periods where they gave claimants time to respond.

I, for one, would not like to be in charge of pressing the button that distributes several billions of dollars to thousands of different people without it fucking up. If someone is doing that this July you would hope that they have dotted all their Is and crossed all their Ts.

I'm ready for the button presser to say "Oops! I got hacked, sorry it's all gone again."

Part of the problem was the lawsuit from CoinLab, which took years to resolve. There wasn't anything like that with FTX.

Part of it.

Meaningless comparison, crypto has grown a lot since 2013

The Japanese system hasn’t and Mt Gox’s bankruptcy trustee issues have almost nothing to do with the presence of crypto and more to do with the presence of grifters taking advantage of the idea that something to do with crypto makes it administratively complicated

when it really makes it simpler

Reply on news.ycombinator.com