- Ripple CTO David Schwartz suggested selling FTX crypto assets and dividing the proceeds between victims as the best way to go.
- His statement comes in response to another user who said giving customers back their crypto assets is best.
- The user argued that customers may prefer to keep their assets rather than sell them at current market prices.
In a post on X (formerly Twitter), Ripple Labs CTO David Schwartz said that selling FTX crypto assets and dividing the cash between victims of the collapse is the best way to go. However, another X user disputed this, saying returning actual crypto assets is the better option.
Schwartz, in numerous tweets, argued that dividing the pile of cash between the victims is better due to the low chances of fully recovering the crypto assets. He added, “Say there’s an 85% recovery, but 90% of the ETH is recovered. What do you do, and who pays for it to be done?”
Furthermore, he stated that it would be difficult to map recovered crypto to particular victims. On the other hand, the other user argued that giving FTX the power to sell the crypto assets may put the victims at risk of loss.
According to him, the users may prefer not to sell their crypto assets at today’s prices and prefer to keep them instead. Additionally, he voiced that FTX shouldn’t even have the right to sell in the first place without the permission of the original owners/investors.
Following its collapse last year, FTX victims have sought to recover their crypto assets that went down with the company. Since then, the bankruptcy estate of the defunct company has tried to recover misappropriated funds.
In the most recent case, the estate sued Sam Bankman-Fried’s parents Joseph Bankman and Barbara Fried, who they said enriched themselves using customer’s funds. Per the filing, the bankruptcy estate accused the couple of exploiting their relationship with Sam Bankman-Fried and funneling FTX funds to personal endeavors.
While the filing didn’t include an exact figure, the estate is looking to recover millions of dollars from the couple. Sam Bankman-Fried’s parents are both tenured professors at Stanford Law School.
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