FTX says it will return money to most of its customers

FTX customers are getting a rare good deal. Here’s why some are still angry

A US Judge John Dorsey ruled Monday that former customers of the now-defunct cryptocurrency exchange FTX will be reimbursed around 119% of the money they had hunder the company's management before it went bankrupt in 2022.

BBC News

Wired

The ruling means that FTX must pay a total of up to $16.5B in reimbursements, covering an estimated 98% of customers who held $50K or less in their accounts at the time of the bankruptcy. FTX says its goal is to pay between $14.7B and $16.5B.

The Straits Times

The company, whose founder Sam Bankman-Fried has been sentenced to 25 years in prison for stealing customer's investments, was convicted of funneling the money into its sister company, Alameda Research, for personal business investments and political donations.

CNBC

Not all customers are happy with a refund valued at the price of their crypto holdings in November 2022. Those who had Bitcoin, for example, would have seen their investments up 260% today.

One advisor for FTX, which reportedly only held 0.1% of the cryptocurrency it claimed to have been holding at the time, said it would be "exorbitantly expensive" to purchase the necessary cryptocurrencies needed to pay back customers at today's value.

FTX said it was able to obtain the agreed upon money by recovering some of the lost assets during the company's collapse; and it sold other assets, such as investments in other companies, including artificial intelligence firm Anthropic.

FTC Bankruptcy Approved, Customers to Receive Refunds

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FTC Bankruptcy Approved, Customers to Receive Refunds

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