Failed cryptocurrency company FTX says it has more than enough to pay compensation to victims

Image source, Getty Images

Comment on the photo, Sam Bankman Fried was sentenced to 25 years in prison for defrauding customers

  • author, Joao da Silva
  • Role, Business reporter

Collapsed cryptocurrency exchange FTX says it has billions of dollars more than it needs to repay customers.

The company says that once its remaining assets are sold, it will have up to $16.3bn (£13bn) to cover debt, which is around $11bn.

The company’s new reorganization plan stipulates that almost all of its clients will receive at least the total amount they lost when FTX collapsed in November 2022.

In March of this year, FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for defrauding clients and investors in the now-bankrupt company.

“We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of the bankruptcy claim amounts plus interest to non-government creditors,” said John Ray, the company’s new CEO.

The plan still needs approval from the US Bankruptcy Court.

FTX said it is raising money to pay down its debt by selling asset investments held by Alameda Research or FTX Ventures.

Alameda was a cryptocurrency trading company controlled by Bankman Fried.

The price of the largest cryptocurrency, Bitcoin, has risen by about 270% since the company declared bankruptcy more than a year and a half ago.

FTX was one of the largest cryptocurrency platforms in the world before its downfall.

Bankman Fried enjoyed celebrity status and his platform attracted millions of customers.

After reports that it was in trouble, customers withdrew billions of dollars from FTX, causing the company to collapse and exposing the extent of Bankman-Fried’s crimes.

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