Former FTX customers could soon get their money back in new plan --[Reported by Umva mag]

Customers of the cryptocurrency exchange FTX are set to receive refunds, with up to $16.5bn recovered under a bankruptcy plan.

The firm went bankrupt back in November of 2022 leaving customers around the world unable to access their accounts.

The former CEO Sam Bankman-Fried was convicted of stealing customer funds before the collapse and was sentenced to 25 years at the end of March 2024.

Ahead of his sentencing, victims of the collapse had written to the judge to share their thoughts and to attempt to convey the impact that the fraud had on them. A couple in Barcelona, had around $4 million in dollars and Bitcoin in FTX with the husband describing the situation as them having “lost everything.”

$266M has been withdrawn from FTX in the last 24 hours

$73M from FTX US pic.twitter.com/qoiroPSegq

— Nansen (@nansen_ai) November 12, 2022

FTX bankruptcy plan was approved 

Now, a bankruptcy plan approved in the US on Monday (October 7) will enable customers to recover a sum worth about 119% of what they had in their accounts at the time of bankruptcy, according to FTX.

When the plan is declared effective, with the date yet to be agreed upon, creditors can expect to receive their funds 60 days later.

When FTX declared bankruptcy in late 2022, around $8bn in customer funds were reported missing. This figure doesn’t include debt to investors and others.

John J Ray III, the lawyer who was appointed to handle the bankruptcy process, is reported as saying the approval of the plan was a “significant milestone” in the firm’s efforts to repay the money to people and firms.

“Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history.”

Assets worth $14.7-$16.5bn have been recovered, some of which by selling off FTX’s remaining assets including its investment in AI firm Anthropic.

Featured Image: AI-Generated via Ideogram

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