FTX Expects Full Repayment to Customers, Scraps Relaunch Plans

The fallout from the shocking implosion of cryptocurrency exchange FTX continues, as lawyers for the bankrupt firm updated proceedings Thursday with promising news for affected users.

According to a new court hearing, FTX believes it can make customers whole by repaying account funds lost in the crash. Meanwhile, after failing to find a buyer, plans to salvage and relaunch the exchange have been scrapped.

Key updates on the ongoing legalities:

• FTX lawyers stated the firm expects to fully repay account holders funds.
• Over $16 billion in customer claims have poured in from 36,000 users since its collapse.
• The company has abandoned previous efforts to secure a buyer and relaunch the exchange platform.

Before its dramatic collapse in November 2022, FTX was one of the biggest cryptocurrency exchanges in the world. Since then, it has been through a lot of trouble.

The CEO and founder of FTX, Sam Bankman-Fried, was charged with fraud after it was discovered that FTX wrongly used customer funds to back risky bets made by its sister hedge fund, Alameda Research.

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FTX plans to make customers whole

With the exchange now going through Chapter 11 bankruptcy proceedings, the exchange offered optimism about making customers financially whole. FTX attorneys expect the firm can fully repay account holders the billions lost.

While positive for users who lost access to holdings, FTX confirmed the abandonment of its plan to salvage the platform and relaunch operations under new ownership and management. According to details, the exchange’s lawyers cited a lack of prospective buyers as grounds for scrapping the proposed reset.

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FTX still faces an uphill battle to make all affected traders whole. Court documents verify staggering sums tied up in ongoing bankruptcy litigation—over $16 billion total among more than 36,000 claimed accounts, according to the WSJ.

If the exchange pulls off full repayment of user funds lost, it would help rebuild trust in the crypto market infrastructure after debacles at several major exchanges.