In what is a huge development, bankrupt cryptocurrency exchange FTX has declared that almost all customers will receive a full refund. Indeed, CNBC reports that the exchange will be able to refund almost all users affected by the platform's collapse in 2022.
FTX has issued estimates of approximately $11.2 billion owed to its creditors. Additionally, the exchange has now said it currently has somewhere between $14.5 billion and $16.4 billion to distribute, the report said. Moreover, the exchange is ready to refund some customers even more than their current claims.
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FTX will refund $11 billion to customers
There is little argument that the collapse of industry mainstay FTX was the darkest moment for the digital asset sector. The cryptocurrency exchange and its head, Sam Bankman-Fried, had orchestrated one of the largest financial frauds in United States history.
Now that SBF has been sentenced to more than 20 years in prison, the affected creditors are likely to be repaid. FTX has reportedly said that almost all customers of the bankrupt exchange will receive a full refund. Moreover, they will even give some customers back more than just their own money.
Also read: FTX founder Sam Bankman-Fried sentenced to 25 years in prison
Under the platform's reorganization plan, customers whose claims are $50,000 or less will receive 118% of that claim. Furthermore, the plan will ensure that 98% of creditors have access to this repayment. That would come as a huge relief to FTX customers whose FTX investment funds have been inaccessible since the collapse.
A bankruptcy court must still approve the plan, the report said. Moreover, the exchange raised the money through asset sales and venture investments. Specifically, these investments were held by both FTX and Alameda Research, the two companies at the forefront of the collapse.