FTX says it has billions more than owed to victims
Collapsed cryptocurrency exchange FTX has announced that it holds billions of dollars more than necessary to reimburse its customers. After liquidating its remaining assets, the company expects to have up to $16.3 billion available to cover debts, which amount to approximately $11 billion. The firm’s reorganisation plan assures that nearly all customers will recover at least the full amount lost during FTX’s collapse in November 2022.
FTX’s new chief executive, John Ray said: “We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.”
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To gather funds for debt repayment, FTX has been selling assets and investments held by Alameda Research or FTX Ventures, businesses associated with the exchange. Alameda, a crypto trading firm controlled by FTX co-founder Sam Bankman-Fried, was involved in the process.
Despite a significant increase in cryptocurrency prices since the company’s collapse, FTX stated that its finances did not experience substantial growth. Most of the Bitcoin and other digital currencies supposedly held by the exchange at the time of its downfall are reportedly missing. Bitcoin, the largest cryptocurrency, has surged by approximately 270% since FTX filed for bankruptcy over a year and a half ago.
Before its collapse, FTX was among the world’s leading cryptocurrency platforms.
Wow! People who lost money in the @FTX_Official bankruptcy are expected to receive 118% of what they lost back (per Bloomberg).
100% of loss plus interest. That’s INSANE in a bankruptcy case!! Very good news.
— Meet Kevin (@realMeetKevin) May 8, 2024