FTX to refund clients funds in full

Crypto exchange FTX will refund all of its digital assets to its customers after receiving court approval. Shareholders could also benefit from this decision.

Customers will have access to all of their assets that were blocked when FTX filed for bankruptcy more than a year ago and Sam Bankman-Fried was subsequently found guilty of the charges in court.

The order was approved by US bankruptcy judge John Dorsey. It is estimated that shareholders could receive “part of the $1 billion in seized assets.”

As you may recall, in November 2022 it was said that the platform’s customers could receive only a fraction of the funds. However, “by June 2024, FTX had accumulated $12.6 billion in assets, a figure that could increase to $16.5 billion once all the platform’s assets are sold. These assets include stakes in various companies, such as the artificial intelligence company Anthropic.”

According to attorney Ken Pasquale, representing the creditors, this decision could be the result of the cryptocurrency market’s rally over the past year, which has been beneficial to an increase in the price of FTX’s assets.

As a result, the exchange has been able to “negotiate agreements with creditors and regulators, improving customers’ recovery prospects.”

Customers have been critical of the refund, as it will be made in cash and not in cryptocurrency. “Payments will not be immediate either, as FTX is in the process of establishing a trust and hiring a company to oversee the distribution of funds.”

M.Pino

Source: cripto247

(Reference image source: Kanchanara in Unsplash)

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