FTX Has Billions More Than Owed to Victims?

CNBC

Hey folks.

According to the collapsed crypto exchange FTX, it has billions of dollars more than it needs to pay back customers.

FTX shared, that once the firm sold off its remaining assets, it will have as much as $16.3 billion to cover its debts, the worth of its debts stands at around $11 billion.

According to the company's recently announced reorganization plan, nearly all of its customers will receive at least the full amount they lost when FTX failed in November 2022.

Sam Bankman-Fried, a co-founder of FTX, was found guilty in March of this year of cheating the company's clients and investors, leading to his 25-year prison sentence.

Approval is needed on the part of the United States bankruptcy court for the plan.

The firm shared that it has been collecting funds to pay its debts by selling assets investments that are being held by FTX Ventures businesses or Alameda Research.

Controlled by Sam Bankman Fried, Alameda was a cryptocurrency trading company.

Furthermore, FTX shared that the rising prices in crypto since the collapse of the firm had not given a major boost to its finances. It claimed that practically all of the digital currencies, including Bitcoin, that were thought to have been held by the exchange at the time of its collapse had vanished.

Since FTX filed for bankruptcy more than a year and a half ago, the price of the leading cryptocurrency, Bitcoin has risen by around 270%.

Before its downfall, FTX was one of the world's largest crypto exchanges.

Millions of users were drawn to Bankman-Fried's platform, and he enjoyed celebrity status.

Customers withdrew billions of dollars from FTX after reports of the exchange being in trouble, which led to the company's collapse.

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