Chiliz Creator Offers FTX Users 38 Million CHZ

Individual users on the troubled FTX cryptocurrency exchange who were unable to withdraw their monies previously are now eligible to profit from the 38 million CHZ tokens that are being distributed. The money has been set aside by Chiliz's original proprietor.


The disintegration of the FTX enterprise has caused chills to spread throughout the cryptocurrency sector. FTX, which was one of the largest cryptocurrency exchanges in the world, was the most recent cryptocurrency exchange to declare bankruptcy.

As a result, some of the most important players in the sector are adopting a number of measures to ease the tension in the situation by contributing resources in an effort to bring order out of the chaos. For instance, on November 13, Chiliz's founder, Alexandre Dreyfus, declared in a post on Twitter that he would be distributing 38 million CHZ as a bailout to reimburse some FTX subscribers.

On the other hand, these users were required to have CHZ tokens held on the problematic platform. As a direct consequence of this, every user now has access to 10,000 CHZ tokens worth of value.

Nevertheless, the founder revealed that the permission of the liquidators and legal interpretation are also necessary steps before the compensation plan can be implemented. For instance, it would be necessary to have a list of people who were affected, which the network ought to provide.

After TRON Labs' CEO Justin Sun signed an agreement with FTX to promote TRX's recovery, Chiliz made their move shortly thereafter, following in the footsteps of TRON Labs' decision to take a similar strategy. In a similar vein, the crypto derivatives platform Bitget has announced the establishment of a "builder fund" with a total value of $5 million in order to assist injured traders as a result of the collapse of FTX.

FTX is the Victim of a Hacking Attack

On November 12, FTX became the target of a hacking attack just a few hours after announcing that it had filed for bankruptcy under Chapter 11. According to a number of different stories, the thieves got off with more than 400 million dollars.

In addition, others have begun to theorize that the occurrence may have been the result of a conspiracy by those with knowledge of the situation. In addition to this information, the creator of Chiliz disclosed that 37 million CHZ was among the stolen assets.

According to all available evidence, customers of FTX have a very small probability of ever having their money back. The current value of FTX's liquid assets is only estimated to be $900 million, although its liabilities currently total close to $9 billion.

Despite this, the value of one CHZ token dropped by more than thirty percent in the week following its all-time high of seventy-five cents. According to data provided by CoinMarketCap, its price as of right now is $0.18.

Huobi Funds Continue to Be Confined to FTX

The cryptocurrency exchange disclosed that the funds that belong to its subsidiary, Hbit, are still being held in custody by FTX. The company estimates that the total amount of funds, which includes deposits from clients, is 13.2 million dollars. However, only $5 million of the total of $13.2 million is Hbit's to claim as their own.

The number of people who have been affected by the FTX scandal continues to grow following the announcement made by Huobi. According to Huobi, the company has submitted an application for $14 million in unsecured funding in an effort to help reduce the amount of money that is lost by customers.

The company would incur a liability of 32 million dollars as a result of the loan. Huobi disclosed, however, that the stuck assets would not have an impact on the company's regular operations because the activities of Hbit are separate from those of the Huobi Group.

In the meantime, members of the cryptocurrency community view Huobi's claim with skepticism as growing concerns about the potential impact of the FTX exposure continue to surface.

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