177% up to 5BTC + 77 Free Spins!
New players only. Exclusive Welcome Bonus of 177% + 77 Free Spins
Cryptocurrency exchange FTX, which faced bankruptcy in late 2022, has achieved a significant turnaround, surpassing the necessary funds to cover its losses incurred during its collapse. CEO John Ray hailed this achievement as an “unbelievable result,” signaling the exchange’s commitment to fully compensating its over 2 million customers.
FTX is poised to amass approximately $16.3 billion in cash through the pending sale of its assets, exceeding its $11 billion debt to customers and other creditors, as reported by Bloomberg. While customers affected by the bankruptcy will receive full payments with interest, equity holders are unlikely to receive any residual amounts, according to court documents.
Depending on their claim types, some creditors stand to recover up to 142% of their owed amounts, while most customers may receive 118% of their account balances at the time of FTX’s bankruptcy filing. To aid in compensating certain creditors, FTX’s restructuring advisers have proposed establishing a fund, reallocating funds that would have been earmarked for regulatory bodies. However, the timeline for this initiative remains uncertain, although payouts are anticipated in the coming months.
Following the news, FTX Token (FTT), the exchange’s native token, experienced a notable surge, reaching $2 and gaining over 33%, according to CoinMarketCap data. This market response underscores renewed confidence in FTX’s recovery and its commitment to addressing the fallout from its bankruptcy.
FTX faced collapse in November 2022 amidst allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund Alameda Research. Founder Sam Bankman-Fried was sentenced to 25 years in prison and ordered to reimburse $11 billion, marking a significant legal and financial ordeal for the exchange and its stakeholders.