Daily Management Review

Bankrupt crypto exchange FTX will refund money to almost all customers


According to court documents cited by MarketWatch, the American cryptocurrency exchange FTX, which filed for bankruptcy in 2022, will reimburse nearly all of its customers for their money.

FTX owes creditors approximately $11.2 billion; the debt can be paid off with between $14.6 and $16.3 billion.

The exchange plans to pay creditors' interest out of the leftover funds. The rate for most people will be 9%.

Clients and creditors who are seeking less than $50,000 will get around 118% of the total. Payouts will relate to roughly 98% of clients.
FTX was able to raise the money needed for the payouts through litigation and asset monetization—mostly through investments from affiliates Alameda and FTX Ventures.

In November 2022, the site, which at the time was the third-biggest cryptocurrency exchange globally, filed for bankruptcy.

Sam Bankman-Fried, the former CEO of FTX, was found guilty in March of embezzling client cash and received a 25-year prison sentence.

source: marketwatch.com