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Andrew Feinberg
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Collapsed crypto exchange FTX has announced that customers will recover all of their funds lost following the company’s implosion two years ago.
Creditors will receive $11.2 billion (£9bn) after chief executive John Ray III unveiled a bankruptcy plan that will raise between $14.5bn and $16.3bn from selling off assets.
The repayments, which will include interest for some FTX users, will align to the value of bitcoin at the time of the exchange’s collapse. The price of the cryptocurrency has more than tripled in value since then, meaning the creditors will not benefit from bitcoin’s higher prices, however most will benefit from an interest rate of 9 per cent.
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” Mr Ray III said.
Customers and creditors that claim $50,000 or less will get about 118 per cent of their claim, according to the plan, which was filed with the US Bankruptcy Court for the District of Delaware. This covers about 98 per cent of customers.
FTX said that it was able to recover funds by monetizing a collection of assets that mostly consisted of proprietary investments held by the Alameda or FTX Ventures businesses, or litigation claims.
FTX, which was once the third-largest cryptocurrency exchange in the world, filed for bankruptcy protection in November 2022 after it experienced the crypto equivalent of a bank run.
The company appointed its new CEO, a long-time bankruptcy litigator who is best known for having to clean up the mess made after the collapse of Enron.
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” Ray said in a prepared statement.
The bankruptcy court is set to hold a hearing on 25 June.
In March, former CEO and founder Sam Bankman-Fried was sentenced to 25 years in prison for his role in overseeing the crypto exchange’s demise.
Once known as the ‘Crypto King’, Bankman-Fried had previously been one of the industry’s figureheads, appearing before Congress and seeking celebrity endorsem*nts from the likes of NFL star Tom Brady and comedian Larry David.
During his sentencing, Judge Lewis Kaplan said the 32-year-old had never uttered “a word of remorse for the commission of terrible crimes”.
Additional reporting from agencies.
FAQs
Collapsed crypto exchange FTX has announced that customers will recover all of their funds lost following the company's implosion two years ago. Creditors will receive $11.2 billion (£9bn) after chief executive John Ray III unveiled a bankruptcy plan that will raise between $14.5bn and $16.3bn from selling off assets.
Are FTX customers getting money back? ›
FTX founder Sam Bankman-Fried, left, arrives at a federal courthouse in Manhattan on Feb. 16, 2023. Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago.
Will FTX funds be recovered? ›
FTX customers will get their money back and more—but the biggest winners are bankruptcy traders. Sam Bankman-Fried, the former CEO of FTX, is serving a 25-year sentence. In a rare outcome for bankruptcy, customers of the failed cryptocurrency exchange FTX will recover all of their money—and then some.
Are FTX customers set to recover all funds lost plus interest? ›
FTX customers are set to recover all funds lost, plus interest. Bankruptcy lawyers say they have collected $14.5 billion to $16.3 billion and are ready to distribute it to defrauded customers.
Will FTX customers be made whole? ›
Andrew Scurria: What FTX is projecting is that most customers, 98%, which are the retail customers, individual traders, they will get back what they had invested as of the day FTX filed for bankruptcy plus interest to compensate them for the time value of their money, the little less than two years that their crypto ...
Have FTX customers been repaid? ›
FTX has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse. A United States court has ordered bankrupt cryptocurrency exchange FTX to pay $12.7bn in relief to its customers, the Commodity Futures Trading Commission has said.
Will FTX creditors be repaid in full? ›
All of FTX's creditors, except the government, will get 100% of their money back in cash plus interest, the bankrupt cryptocurrency exchange's estate said late Tuesday.
Are FTX customers being repaid in full with interest? ›
With about $16 billion in recovered funds, FTX customers can expect to be repaid 'in full, with interest.' However, there is one, major caveat: Their repayments are based on a bitcoin price of $16,871. Obviously, many victims have objected to this plan.
Is FTX able to pay back? ›
Since its bankruptcy filing in 2022, FTX's new management has been able to recover $16 billion to pay back customers, and has said it plans to repay them in full.
Is my FTX money lost? ›
Nearly all of FTX's former customers will get back almost 100% of the money they lost at the time of the cryptocurrency exchange's collapse — if not more.
27, 2022, in Minneapolis. FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.
How much does FTX owe its customers? ›
The collapsed cryptocurrency exchange, which owes creditors about $11.2 billion, has between $14.5 billion and $16.3 billion available to distribute to them.
How do I claim back from FTX? ›
Login to the Customer Claims Portal using the same username and password you used to create your FTX account. If you opted to sign in with your Google or Apple account, login using the applicable method. FTX account: Email, SMS or Authenticator app. Click Submit.
Who is the largest customer of FTX? ›
SBF and a couple of his associates, one of whom was the CEO of Alameda, a trading firm SBF co-founded and FTX's largest customer, were criminally charged with multiple counts of fraud.
How to recover lost money in crypto? ›
If you are a victim of a crypto scam, joining a class action lawsuit can help you recover some or all of your funds. A class action lawsuit pools together many victims who have suffered similar crypto losses. This makes it easier to hold the perpetrators accountable and seek justice.
How is FTX paying back? ›
FTX has developed a structured repayment plan approved by the bankruptcy court. The plan divides assets into distinct pools: one for FTX.com customers, one for U.S. customers, and a general pool for other creditors. According to the amended plan, FTX aims to repay up to 90% of the available assets to its customers.
What happened to the FTX money? ›
FTX crashed due to mismanagement of funds, lack of liquidity and the large volume of withdrawals. Binance announced it would buy FTX to prevent a larger market crash, but quickly bailed out of the deal as more news reports of mishandled customer funds surfaced.
Are FTX customers getting money back on Reddit? ›
Most FTX customers to get all their money back less than 2 years after collapse : r/news.
How to sell FTX claims? ›
Sell your FTX claim on Figure Markets
- Find your claim value. Enter your FTX unique customer code and email below to verify your claim.
- Open a Figure Markets account. Sign up for a free account and complete the KYC identity verification process.
- Submit an offer. ...
- Finalize the sale. ...
- Receive your funds.
