FTX Cleared for $16.5B Customer Repayment

CRYPTO
FTX Cleared for $16.5B Customer Repayment

FTX has received court approval for its bankruptcy repayment plan, which aims to return between $14.7 billion and $16.5 billion to its creditors. This decision, approved by a Delaware bankruptcy court, comes nearly two years after the exchange's collapse. Under the plan, customers will receive at least 118% of the value of their claims based on the value of their assets at the time of FTX's bankruptcy in November 2022.

Despite the recovery efforts, some customers have expressed dissatisfaction, as repayments will be made in cash rather than the cryptocurrencies they originally deposited. With the significant rise in cryptocurrency prices since the collapse, many feel that the repayment does not fully compensate for their losses.

FTX's success in asset recovery, including selling stakes in companies like the AI firm Anthropic, has been critical in allowing the firm to cover its debts. In addition, government agencies like the IRS have agreed to prioritize customer repayments over other claims, further enhancing the prospects for creditors. Shareholders, who usually do not receive returns in such cases, might also receive a portion of the $1 billion seized during the prosecution of former FTX CEO Sam Bankman-Fried

CRYPTO
Bahrain Launches Bitcoin Investment Product

The National Bank of Bahrain (NBB) has launched the first Bitcoin-linked investment product in the Gulf Cooperation Council (GCC), partnering with ARP Digital. This structured investment fund offers capital protection during market downturns while allowing investors to benefit from Bitcoin's growth, up to a predefined threshold. Targeted at accredited investors, it aims to diversify portfolios securely amid the growing crypto adoption in Bahrain and the broader region.

The launch of the first Bitcoin-linked investment product by the National Bank of Bahrain can be seen as a sign of Bitcoin adoption in Bahrain. This initiative signals the country's openness to integrating Bitcoin into traditional financial products, marking a significant step in crypto acceptance within the Gulf Cooperation Council region.

MACRO INSIGHTS
Goldman Sachs Cuts Recession Odds to 15%

Goldman Sachs has reduced its forecast for the likelihood of a U.S. recession within the next year to just 15%, aligning with the long-term average. This change follows a strong jobs report for September, which revealed that the economy added 254,000 jobs and the unemployment rate fell to 4.1%, slightly below July's rate of 4.2%

The robust job growth and a decrease in the unemployment rate have alleviated fears of a declining labor market, which had previously raised recession concerns. Goldman Sachs noted that this data avoids triggering the "Sahm Rule," an early recession indicator linked to rising unemployment​. The analysts also mentioned that there is currently no significant pressure on job growth despite high job openings and strong GDP performance.

In light of these developments, Goldman Sachs maintains its projections for interest rate cuts, suggesting that the Federal Reserve could implement a series of 25-basis-point reductions over the next year, targeting a terminal rate between 3.25% and 3.5%

Word of the day
Exorbitant

Exorbitant describes something that goes far beyond what is fair, reasonable, or expected (as by being too high, too expensive, etc.)

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