During the UST (luna) crash, I lost 13k on the Donut app, I managed to offset most of it with the 10k overall gain by around Nov, but then came the FTX crash. By this point, I had significantly reduced my balance with them (from 100k to 15k) due to the initial crash, but this time instead of losing a small portion of the investment in the platform that crashed, its 95%!!!!!!!! 95% of the portfolio was indirectly invested in FTX, through some other middle-man company. So $14,250 of my money is now on pause in their app, and I know pretty soon I’ll be slapped with that Bankruptcy notification.
Does anyone know of any lawsuits against this company?
Also, in general, when a company that’s holding people’s money goes bankrupt, if any money is recovered from them to be returned to the people, will that happen automatically, or do I have to go fill out paperwork or higher a lawyer to be able to get any of that money back?
The reason I ask is that based on what I’ve seen in forums, I believe I’m in the top 1% in terms of lost amounts among their customers. The highest number I’ve seen anyone else post is 7k. So I feel like I’d be close to the beginning of the line of people to who they owe money, and therefore might have a chance of getting some money back.
I hate to be the one to tell you this but apparently it needs to be said:
Mate you’re an unsecured creditor. You are wayyyy behind any institutional lenders, government revenue services and professional advisory firms in the queue to get your money back. When it gets to the unsecured creditors it doesn’t matter how high up a queue you think you should be, any remaining balance is paid out proportionally based on exposure not full repayment to those most exposed first.
Kiss it goodbye and chalk it up to a learning experience that you should never trust someone else with your money.
E: payed to paid to keep the fucking bot happy.
What has this is to do with Defi? these are cefi issues
So far, not one Cefi “app” has proven to be FDIC insured. Even in the gemini sub people claim it but never read the TOS. It specifies how insurance works and the actual insurance aspect is “up to accounting”, therefor they can magically say your funds were in an uninsured account, even if you have USD and no crypto.
These companies go bankrupt for a reason, they lost their assets, therefor you won’t get yours.
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I doubt any of these platforms get sued outside of possible gov’t ABC, but likely no1 but them will get a dime