FTX says most customers will get all their money back, less than 2 years after cryptocurrency collapse
- FTX said in a court filing it owes about US$11.2 billion to its creditors, and estimates it has between US$14.5 billion and US$16.3 billion to distribute to them
- FTX was the world’s third-largest cryptocurrency exchange when it filed for bankruptcy protection in November 2022 after experiencing the equivalent of a bank run
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 on Tuesday that it owes about US$11.2 billion to its creditors. The exchange estimates that it has between US$14.5 billion and US$16.3 billion to distribute to them.
The filing said that after paying claims in full, the plan provides for supplemental interest payments to creditors, to the extent that funds still remain. The interest rate for most creditors is 9 per cent.
That may be a diminished consolation for investors who were trading cryptocurrency on the exchange when it collapsed.
When FTX sought bankruptcy protection in November 2022, bitcoin was going for US$16,080. But cryptocurrency prices have soared as the economy recovered while the assets at FTX were sorted out over the past two years.
A single bitcoin on Tuesday was selling for close to US$62,675. That comes out to a 290 per cent loss, a bit less than that if accrued interest is counted, if those investors had held onto those coins.