Do you want to create a market? I’d be happy to bet 1:70.
Not only they’re returning all the customer money, they were also able to pay somewhere between hundreds of millions and 1.5b (couldn’t find an accurate number) to the lawyers. My impression is that they found a lot of unaccounted money lying around. It’s also not obvious what was the value of Anthropic
The main reason they are in a better position to pay is the massive increase in the value of crypto assets after filing vs. the proposal to pay out the value of customer holdings on the day of bankruptcy. That is irrelevant to whether they were solvent in November 2022.
Actually, the bankruptcy lawyers and other professionals get paid by the estate ahead of almost all unsecured claimants. Their claims are generally entitled to administrative expense priority. That priority exists because no sane lawyer or professional would agree to represent the bankrupt while accepting general unsecured creditor status (after all, they already know the debtor is insolvent!). The same is true of many other vendors and service providers who provide services to the estate after the bankruptcy petition is filed.
If everyone else had truly been made whole, equity holders are last in line to get the remainder. But I think the odds of SBF receiving a meaningful distribution here are ~zero; the bankruptcy judge would amend the reorg plan as necessary to prevent him from profiting from his crimes.
No, they already spent at least hundreds of millions (and possibly more than a billion- I saw a $1.5b number somewhere) on the lawyers. The first thing the lawyers did, back in November 2022, was getting paid
They almost certainly were not. (99%)
Do you want to create a market? I’d be happy to bet 1:70.
Not only they’re returning all the customer money, they were also able to pay somewhere between hundreds of millions and 1.5b (couldn’t find an accurate number) to the lawyers. My impression is that they found a lot of unaccounted money lying around. It’s also not obvious what was the value of Anthropic
The main reason they are in a better position to pay is the massive increase in the value of crypto assets after filing vs. the proposal to pay out the value of customer holdings on the day of bankruptcy. That is irrelevant to whether they were solvent in November 2022.
Surely they don’t pay the lawyers. Surely after the debtors are paid they pay the shareholders?
Actually, the bankruptcy lawyers and other professionals get paid by the estate ahead of almost all unsecured claimants. Their claims are generally entitled to administrative expense priority. That priority exists because no sane lawyer or professional would agree to represent the bankrupt while accepting general unsecured creditor status (after all, they already know the debtor is insolvent!). The same is true of many other vendors and service providers who provide services to the estate after the bankruptcy petition is filed.
If everyone else had truly been made whole, equity holders are last in line to get the remainder. But I think the odds of SBF receiving a meaningful distribution here are ~zero; the bankruptcy judge would amend the reorg plan as necessary to prevent him from profiting from his crimes.
No, they already spent at least hundreds of millions (and possibly more than a billion- I saw a $1.5b number somewhere) on the lawyers. The first thing the lawyers did, back in November 2022, was getting paid