At the end of March, the co-founder of the cryptocurrency exchange FTX, Sam Bankman Fried, was convicted of embezzling several billion dollars of customer funds to support the rest of the FTX group companies. He was charged with seven counts of conspiracy and fraud, and as a result, the court ordered Fried to spend the next 25 years in prison. Meanwhile, FTX customers were worried about whether they would even get back their funds invested in the exchange. But the company reassures that “the majority of customers affected by the FTX collapse will get all their money back.”
Lawyers for bankrupt FTX say they have raised up to $16.3 billion, more than needed to pay off the company’s estimated $11 billion in debt. This means that, in theory, all customers affected by the company’s bankruptcy will get their funds back.
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Once approved by the court, FTX will begin refunding customers within 60 days. The amount to be repaid will be the value of the client’s assets at the time of the collapse of FTX. It should be noted here that FTX lawyers already informed at the beginning of the year that the company’s clients will get all their money back.
It should be recalled that the once successful cryptocurrency exchange FTX filed for bankruptcy in November 2022. On the other hand, the then executive director of the company, Sams Bankmans-Frieds, resigned from his position.
Tags: Bankrupt cryptocurrency exchange FTX promises customers money
