FTX Says Almost All Customers Will Get Full Refunds

Joshua Ramos
Source: The Verge

In what is a massive development, bankrupt cryptocurrency exchange FTX has stated that almost all customers will get a full refund. Indeed, CNBC reports that the exchange will be able to repay nearly all users affected by the platform’s collapse in 2022.

FTX has issued estimations of around $11.2 billion owed to its creditors. Moreover, the exchange has now said that it currently has somewhere between $14.5 billion and $16.4 billion to distribute, according to the report. Additionally, the exchange is poised to repay some customers even more than their current claims.

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FTX Set to Repay $11 Billion to Customers

There is little argument that the collapse of industry mainstay FTX was the darkest moment for the digital asset sector. The cryptocurrency exchange and its head, Sam Bankman-Fried, had orchestrated one of the largest financial frauds in the history of the United States.

Now, with SBF sentenced to more than two decades in prison, affected creditors are set to get repaid. Indeed, FTX has reportedly said that nearly all customers of the bankrupt exchange will get a full refund. Moreover, they will give some customers even more than just their own money back.

Sam Bankman-Fried Tried to Connect With FTX CEO John Ray via Mail
Source: Bloomberg

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According to the platform’s reorganization plan, customers whose claims reach $50,000 or less will get 118% of that claim. Additionally, the plan will see 98% of creditors access this repayment. That would represent a massive relief to FTX customers whose FTX investment funds have been inaccessible since its collapse.

A bankruptcy court must still approve the plan, the report notes. Moreover, the exchange raised the funds through asset sales and venture investments. Specifically, those investments were held by both FTX and Alameda Research, the two companies at the forefront of the collapse.