Founders

After the return of funds from FTX, the amount flowing into the crypto market could be significantly less than initially anticipated. While $16 billion has been circulating as an estimate online, a more realistic figure is closer to $9.5 billion.

Here are key points from one trader who lost a substantial amount on FTX:

1. **Liabilities to customers are around $9.5 billion**, not $16 billion.

2. **Half of these funds have already been sold on the OTC market**, where buyers of the debt could make 2-3x profits. This means these funds are unlikely to flow back into the crypto market, as they will be directed toward other investments.

3. **Distribution of funds**: Customers with claims under $50k could receive payments in 2024, while those with claims above $50k are expected to receive their funds in 2025.

Thus, a significant portion of the funds may not return directly to the crypto market, especially with the delays and profits made by third-party buyers.