FTX Customers to be Repaid Billions with Interest After Cryptocurrency Exchange Collapse
In a surprising turn of events, customers who lost their money in the collapse of FTX, once a major cryptocurrency exchange, are set to be repaid with interest. The exchange, led by convicted fraudster Sam Bankman Fried, went bust in November 2022, leaving an estimated one million customers without their funds.
However, FTX has now announced that it has recouped enough funds to repay its customers and creditors. Between $14.5 billion and $16.3 billion is available for distribution, with debts totaling about $11 billion. The majority of creditors, 98%, are expected to receive 118% of the amount owed within 60 days of the proposed repayment plan taking effect.
The collapse of FTX was a significant blow to the cryptocurrency world, with Bankman Fried found guilty of lying to investors and misappropriating customer funds for personal use. He was sentenced to 25 years in jail in March.
As part of the fallout from the collapse, the UK manor home known as Effective Altruism Castle, which was supported by FTX, is now up for sale. The property, purchased by the Effective Ventures Foundation, is listed at £15 million, with proceeds from the sale to be allocated to high-impact charities.
The repayment of FTX customers and the sale of Effective Altruism Castle mark the end of a tumultuous chapter for the cryptocurrency exchange and its associated ventures.