Nearly all of FTX’s former customers will get back almost 100% of the money they lost at the time of the cryptocurrency exchange’s collapse — if

FTX customers are getting back all the money they lost in the crypto exchange's collapse

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2024-05-10 08:00:02

Nearly all of FTX’s former customers will get back almost 100% of the money they lost at the time of the cryptocurrency exchange’s collapse — if not more.

FTX said in a statement Tuesday that it expects 98% of its creditors to receive approximately 118% of the amount of their allowed claims. Others will receive 100% of their claims plus billions in interest as compensation for the time value of their investments.

The company forecasts that the total value of the assets, converted to cash and made available for distribution, will be between $14.5 and $16.3 billion. The updated reorganization plan, as outlined in filings in Delaware bankruptcy court submitted Tuesday, will be funded from cash that the company has on hand, available NFTs, wind-down cash proceeds, and any remaining assets.

Shareholders’ claims will be calculated based on their holdings as of November 2022, when the crypto exchange filed for Chapter 11 bankruptcy . The announcement was likely welcomed by former customers, whose money was locked up amid court proceedings. At the time of the collapse, it was believed that billions of dollars worth of customer deposits in FTX would likely never be recovered.