Bankrupt Crypto Firm FTX Is Going to Pay Customers Back in Full — Plus Interest

Cryptocurrency speech FTX, which went bankrupt successful November 2022, announced that almost each of its customers could get backmost what they mislaid successful cash, and past some, nether a recently projected plan.

According to precocious Tuesday filings submitted by FTX to nan U.S. Bankruptcy Court for nan District Court of Delaware, FTX will person betwixt $14.5 and $16.3 cardinal successful rate aft it sells each of its assets — much than capable to screen nan $11.2 cardinal it owes non-government creditors.

Most (98%) of FTX's creditors are customers pinch claims of $50,000 aliases less.

If nan tribunal approves nan projected plan, this group of 2 cardinal group will person 118% of their allowed claims successful rate wrong 60 days.

The percent is "100% of bankruptcy declare amounts positive interest," per FTX CEO John Ray, who took complaint aft FTX collapsed. He besides led Enron done bankruptcy.

"In immoderate bankruptcy, this is conscionable an unbelievable result," Ray told Bloomberg.
John J. Ray III, CEO of FTX Group. Photo Credit: Tom Williams/CQ-Roll Call, Inc via Getty Images

Creditors will find retired really to ballot connected nan scheme aft a tribunal proceeding adjacent month.

According to Ray, this is nan first clip a record-high 2 cardinal customers and different creditors tin declare repayment successful a bankruptcy case.

Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About nan Disgraced Crypto King

FTX was capable to raise nan money to repay its debts by trading assets for illustration its $900 cardinal stake successful AI patient Anthropic.

Though nan crypto speech will apt beryllium capable to salary backmost its customers, thing will apt beryllium near complete for shareholders aft authorities claims are considered, per Bloomberg. Under U.S. bankruptcy law, each debts must beryllium paid earlier equity holders tin collect.

Payments to customers will bespeak nan prices of cryptocurrencies successful 2022, not arsenic they are correct now. Crypto prices person grown successful 2 years, leaving immoderate societal media users disgruntled astir their return connected investment.

"If you had Bitcoin astatine nan clip of nan illness it was worthy 16k," 1 Reddit personification posted. "You will compensated for 16k, not nan Bitcoin which is now worthy 62k. So it's a small disingenuous."

A Statista chart published connected Wednesday confirms nan estimated value of Bitcoin successful November 2022 and its astir caller price.

Related: Sam Bankman-Fried Sentenced to 25 Years successful Prison for Multibillion-Dollar Crypto Fraud

U.S. prosecutors labeled FTX "one of nan biggest financial frauds successful American history" past twelvemonth aft customers mislaid $8 billion. Sam Bankman-Fried, nan 32-year-old laminitis of FTX, was sentenced to 25 years successful situation successful March.