FTX Recovers Billions Beyond Customer Repayments, Customers to Receive Full Amount Plus Interest, Crypto Market Resurgence Drives Surplus

According to the latest information, FTX, the collapsed crypto exchange, has recovered billions of dollars more than it needs to repay its customers who lost funds during the company’s November 2022 collapse. This surplus has been attributed to the recovery of assets and the crypto market’s resurgence following the collapse. As a result, customers who held funds on the exchange at the time of its collapse will receive 100% of the amount they had in their accounts, plus interest, in the upcoming bankruptcy settlement. However, they will not be receiving their crypto assets back but US dollars based on the value of their accounts at the time of the collapse. While this outcome is unusual compared to other bankruptcies where creditors only receive a fraction of what they’re owed, some disgruntled customers have raised concerns over the decision-making process of FTX’s new CEO, John Ray, including the valuation of their accounts. The matter may be resolved by US Bankruptcy Judge John Dorsey, who will consider feedback from creditors before signing off on the plan. The plan still faces obstacles, as some customers have challenged the decision to sell off their assets, arguing that their crypto assets cannot be sold due to their nature.