Collapsed cryptocurrency exchange FTX claims to have more than enough funds to reimburse its customers, exceeding its debt by billions of dollars.
According to the company, once it finalizes the sale of its remaining assets, it anticipates having up to $16.3 billion to cover its outstanding debts, which currently amount to around $11 billion.
FTX’s new reorganization plan outlines that nearly all customers will receive at least the full amount they lost when the exchange collapsed in November 2022.
In March of this year, FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for defrauding customers and investors of the now-defunct company.
FTX’s new CEO, John Ray, expressed satisfaction with the company’s ability to propose a Chapter 11 plan that promises to return 100% of the bankruptcy claim amounts, plus interest, to non-governmental creditors. However, the plan still requires approval from a US bankruptcy court.
The company stated that it has been accumulating the necessary funds to settle its debts by selling off assets and investments held by Alameda Research or FTX Ventures businesses. Alameda was a cryptocurrency trading firm controlled by Bankman-Fried.
Despite a significant surge in crypto prices since the exchange’s collapse, FTX indicated that this increase did not substantially improve its financial position. Additionally, the majority of Bitcoin and other digital currencies believed to have been held by the exchange at the time of its collapse are reportedly missing.
Bitcoin, the largest cryptocurrency, has seen its price rise by approximately 270% since FTX filed for bankruptcy over a year and a half ago.
Before its downfall, FTX was one of the world’s leading cryptocurrency platforms, attracting millions of customers and enjoying considerable recognition. However, reports of financial instability led to massive withdrawals from the exchange, ultimately resulting in its collapse and revealing the extent of Bankman-Fried’s illicit activities.
