Dividends and FTX assets still missing as firm begins bankruptcy process

Everyone who invests is interested in alternatives to the stock market, whether it be real estate, art or collectibles or even crypto currency. Just because you are interested does not necessary mean you ,do because while there are similarities there are also differences. In the world of crypto, some have embraced it, some major banks help move money around and people similar to Warren Buffett says stay away. This means similar to all investments doing your homework is important. When the market or potential market was relatively small you may have heard the names of bitcoin and others. One exchange which rose to prominence was FTX.

In an article by David Yaffe-Bellany of the New York Times News Service, James Bromley, a lawyer at Sullivan & Cromwell in New York said a substantial amount of assets have either been stolen or are missing.

FTX is based in the Bahamas and was owned or controlled by Sam Bankman-Fried who also owned Alameda Research a crypto based hedged fund. Billions of crypto went to the hedge fund which invested in other exchanges.

The reason why FTX is in the news is Mr. Bankman-Fried was worth over $26 billion dollars and now he is in millionaire status. Although it seems FTX or Alameda Research bought real estate in the Bahamas for executives to live. If you follow the NBA Basketball, the Maimi Heat played in the FTX Arena, it will be renamed.

The trustee in bankruptcy is John Jay Ray III, who having oversaw the biggest bankruptcy in the US or Enron, said the FTX was the worst he had seen in his career. The top 50 creditors are owed $3.1 billion.

Linking to dividend paying stocks, when you invest you believe you will be repaid or be able to sell if and when you wish to. FTX went bankrupt but the stock markets continued to have good days because they are large and more interested in the future of the economy, this is good for investors. With all investments, the first rule is try not to lose money, then it is the risk reward calculation. For those with a low-risk reward calculation, receiving dividends from your investments is a good thing. When you receive money, you have alternatives what to do with it, but you should not have to worry about not being able to sell or finding new alternatives.

There are more questions than answers, till the next time – to raising questions.


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