Summary
FTX, a bankrupt cryptocurrency exchange, plans to repay former customers in full despite not restarting the exchange. The company filed for bankruptcy in 2022 and its former CEO was found guilty of fraud a year later. FTX does not plan to re-start the platform as the businesses it bought have little value and there are few interested buyers. FTX CEO John J. Ray III previously mentioned soliciting interested parties for a potential reboot. The company’s lawyer stated that a disclosure statement will be filed in February, likely including full payment of customers’ claims. However, the lawyer noted that the payment is based on the value of claims at the petition date, which may not reflect the original value due to currency fluctuations. The judge approved a motion to convert claims in digital assets to U.S. dollars.
Key Points
1. Bankrupt cryptocurrency exchange FTX plans to repay former customers in full despite abandoning plans to restart the exchange.
2. FTX’s lawyer, Andrew Dietderich, stated that they anticipate having enough funds to pay all allowed customer and creditor claims in full.
3. FTX does not intend to re-start the platform due to the lack of interested buyers and the little value of businesses it acquired for hundreds of millions of dollars.