May 9, 2024

FTX Reports Surplus Funds to Repay Customers After Collapse 💰

Collapsed cryptocurrency exchange FTX claims it has amassed billions more than needed to repay its customers, according to the firm’s new reorganization plan. Once FTX has sold off its remaining assets, it expects to have as much as $16.3 billion (£13 billion) to cover its debts, which stand at approximately $11 billion. The company’s new plan proposes that almost all its customers will receive at least the total amount they lost when FTX collapsed in November 2022.

FTX’s new chief executive, John Ray, said the plan represents a milestone in the company’s restructuring efforts. However, the plan must still receive approval from a US bankruptcy court. The company has been gathering funds to pay its debts by selling assets held by its Alameda Research and FTX Ventures businesses. Although FTX’s financial situation hasn’t been significantly bolstered by the rise in crypto prices since its collapse, the company believes it is on track to compensate most of its customers fully.

Share article