In a recent revelation, David Schwartz, the chief technology officer of blockchain payments firm Ripple Labs Inc said he also has funds locked up on the now-bankrupt crypto trading platform, FTX Derivatives Exchange. According to his tweet, he initially thought he has no liability with the trading firm, but after proper checking, he discovered he has $2,500 in crypto locked up with the exchange.
I thought I didn't have anything personally on FTX, but apparently I had about $2,500 worth of cryptos there.— David "JoelKatz" Schwartz (@JoelKatz) March 30, 2023
While many thought the discovery would not make a dent in his overall networth, Schwartz went on to describe the discovery as one of those things that happen when someone has been in the digital currency ecosystem for a long time.
Describing a similar situation, Schwartz said he once discovered he has 100 BTC tokens in a wallet that he had already forgotten about. According to him, the discovery was made at a time when the price of Bitcoin was pegged at just about $2,500 per coin.
Schwartz did not reveal the exact constellation of crypto pairs it had on FTX, and neither did he express optimism about getting the funds back with the embattled trading firm still in search of funds to repay its creditors across the board.
More victims than envisaged
The revelation that David Schwartz has slight exposure to FTX is a major indication that the more than 100,000 creditors that the trading platform said it owes could feature some of the big names known in the crypto ecosystem.
While most of the organizations with deep exposure to FTX have also exploded, with the likes of BlockFi and Genesis Trading coming to mind, individual creditors might have been dealing with the collapse of the exchange in their own way.
FTX is yet to reveal plans to start paying its unsecured creditors and, for now, the hopes of recovering the $2,500 belonging to Schwartz may not come to fruition anytime soon, in line with a piece of advice he lent to Dave Portnoy last year.