FTX Assures Most Customers Will Recover Funds After Exchange’s Collapse

FTX Logo
FTX Logo

FTX cryptocurrency exchange has announced that the majority of customers affected by its collapse will receive full reimbursement of their assets. Bankruptcy lawyers overseeing the case have revealed that they’ve amassed assets worth up to $16.3 billion, surpassing the company’s $11 billion debt.

John Ray III, FTX’s chief restructuring officer, expressed satisfaction with the situation, stating, “We are pleased to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts.” Upon court approval, FTX plans to commence fund distribution within 60 days, with customers receiving the value of their assets at the time of the exchange’s collapse.

FTX filed for bankruptcy in November 2022, following the resignation of former CEO Sam Bankman-Fried, who is now serving a 25-year prison sentence. John Ray III, tasked with managing the fallout, likened the situation to the Enron scandal. Despite the challenges, FTX’s restructuring team successfully recovered billions by liquidating the company’s assets, including an $884 million stake in the AI startup Anthropic.