FTX Bankruptcy: $16 Billion Recovered, Cash Payments Planned for Customers
- FTX can now solicit creditor votes on its liquidation plan.
- Customers to be repaid in cash, not cryptocurrency.
- Dispute over repayment values based on 2022 crypto prices.
A U.S. bankruptcy court has approved FTX’s liquidation plan, paving the way for the beleaguered crypto exchange to repay customers in cash following its high-profile collapse.
This decision comes after extensive efforts by the FTX team, which has collaborated with multiple U.S. government agencies and liquidated assets to amass funds. FTX attorney Andy Dietderich stated during a court hearing:
“This has been a huge team effort. Everybody was an involuntary investor in this crazy pool of assets, and our job was to turn it into cash.”
The assets recovered thus far originate from diverse sources, including investments in crypto, tech companies, venture funds, and real estate, all allegedly purchased with misappropriated customer funds. The total amount recovered to date nears $16 billion, including approximately $12 billion in cash. FTX intends to reimburse its customers in cash rather than cryptocurrencies.
However, some customers are dissatisfied with the plan and are demanding hig…
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