Crypto exchange FTX to repay customers in liquidation rather than reopen

[thewayne]

FTX was the exchange run by convicted felon Sam Bankman-Fried, who is facing potentially decades in prison for his role in mis-managing the company and failing to produce the technology that the exchange needed. The current managers of the exchange have secured around $7billion in assets and will use that to try to repay customers as much as possible, their accounts were frozen in November '22 when the company filed for bankruptcy.

There's one little catch, which will make the customers unhappy: the payback will be in November '22 pricing. In late '22, crypto was in a slump. Bitcoin was trading at $16.8k, it's now at over $43k. But at least they'll be getting money back, which is more than people in most failed exchanges will be getting. All of this is taking place after having reached an agreement with the courts.

https://www.theguardian.com/business/2024/jan/31/ftx-crypto-exchange-cancelled-refund-customers

Comments

[disneydream06]

There is always a catch. :o
But like you said, at least they are getting something. :o
Hugs, Jon

[silveradept]

I think this is the first time I've seen where a crypto scam (and until proven otherwise, all cryptocurrency is a scam) actually ended up paying back the people who were suckered into putting money into it.

[thewayne]

I'm pretty much of the same thought.