Defunct Crypto Exchange FTX Is Paying Back Customers in Full: Here's What You Need to Know

By Jace Dela Cruz

Feb 01, 2024 01:04 AM EST

FTX, the cryptocurrency exchange that has collapsed, intends to repay investors for the losses they incurred during its downfall.

According to The Verge, FTX lawyer Andrew Dietderich said in a court hearing on Wednesday that the company expects to "have sufficient funds to pay all allowed customer and creditor claims in full."

Former FTX CEO Sam Bankman-Fried Attends Hearing To Determine Bail Revocation
(Photo : Michael M. Santiago/Getty Images)
NEW YORK, NEW YORK - AUGUST 11: Former FTX CEO Sam Bankman-Fried arrives for a bail hearing at Manhattan Federal Court on August 11, 2023 in New York City.

FTX's Repayment Guaranteed?

The repayment strategy outlined by FTX involves compensating customers based on the cryptocurrency's price as of November 2022, when the exchange filed for bankruptcy. 

However, Dietderich acknowledged the challenges ahead, emphasizing the need to scrutinize all claims to validate their legitimacy before disbursing funds. He noted that the statement should not be interpreted as a guarantee but rather as an objective.

Despite admitting the substantial work and risks involved, he expressed confidence in attaining this objective, asserting that the company has "a strategy to achieve it."

READ NEXT: Sam Bankman-Fried Will Not Face a Second Trial After Multibillion-Dollar FTX Fraud Conviction 

Collapse of FTX

FTX faced a dramatic collapse in November 2022, resulting in the apprehension of its founder and former CEO, Sam Bankman-Fried, who was found guilty of fraud by a federal court last November.

The recent commitment to full repayment indicates a pivotal development in FTX's efforts to address the aftermath of its collapse. FTX previously reported that it had over 36,000 claims for a total of about $16 billion. 

READ MORE: Bitcoin Price Soars Above $45,000 for First Time Since April 2022

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