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Customers who lost money when cryptocurrency exchange FTX collapsed in late 2022 are set to get their money back – and more.
That depends advertisement Released today by FTX’s legal team, it outlines a reorganization plan that includes repaying those clients who had less than $50,000 in assets on the exchange when it collapsed up to 118% of the value of their assets — that is, full repayment, plus interest. The ad says that 98% of FTX users have assets of less than $50,000, and as such, the vast majority of clients who lose their money should be able to get it back.
The plan is contingent on approval by the bankruptcy court in Delaware, where FTX’s bankruptcy proceedings are taking place. Earlier this year, FTX lawyers said the company was abandoning its plans to try to relaunch the platform and instead would focus on repaying investors and customers.
The problem was that investors who lost their assets lost capital gains during the recent recovery in the cryptocurrency market. For example, when FTX collapsed in November 2022, Bitcoin was trading at less than $20,000, and today its price is below $62,000. So for customers who lose their Bitcoin holdings, there is a potentially huge gain in value that cannot be recovered.
However, if the plan is finalized and FTX is able to return the money to customers, it would likely come as a huge relief as the company is believed to owe billions to creditors. The announcement says FTX is believed to have raised between $14.5 billion and $16.3 billion for distribution.
“We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of the bankruptcy claim amounts plus interest to non-government creditors,” said John J. Ray III, CEO and chief restructuring officer of FTX at the company. advertisement. “I would like to thank all of FTX’s customers and creditors for their patience throughout this process.”
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