FTX says it has billions more than owed to victims
FTX, the cryptocurrency exchange that collapsed, asserts that it possesses billions of dollars beyond what is necessary to reimburse its clients.
According to the company, once it liquidates its remaining assets, it anticipates having up to $16.3 billion to cover its debts, which currently amount to roughly $11 billion.
Under the firm’s new restructuring proposal, nearly all customers are expected to receive at least the full amount they lost during FTX’s collapse in November 2022.
This assurance comes amidst FTX co-founder Sam Bankman-Fried’s recent sentencing to 25 years in prison for defrauding customers and investors of the now-defunct company.
FTX’s new CEO, John Ray, expressed satisfaction at being able to propose a Chapter 11 plan that guarantees the return of 100% of bankruptcy claim amounts, plus interest, for non-governmental creditors. However, the plan is contingent on approval by a US bankruptcy court.
To amass the funds necessary to settle its debts, FTX has been selling off assets and investments held by Alameda Research or FTX Ventures businesses.
Alameda was a crypto trading firm controlled by Bankman-Fried.
FTX added that a jump in crypto prices since the company failed had not given its finances a major boost. It said almost all of the Bitcoin and other digital currencies believed to have been held by the exchange at the time of its collapse were missing.
The price of the biggest cryptocurrency, Bitcoin, has risen by around 270% since the firm filed for bankruptcy more than a year and a half ago.
FTX was one of the world’s largest crypto platforms before its downfall.
Bankman-Fried enjoyed celebrity status and his platform attracted millions of customers.
After reports that it was in trouble, customers withdrew billions of dollars from FTX, triggering the company’s implosion and laying bare the extent of Bankman-Fried’s crimes.
