FTX may start compensating customers as early as March 2024 and complete the bankruptcy reorganization by the beginning of 2025. FTX CEO John J. Ray III stated that the company’s debtor support professionals have already recovered billions of dollars for FTX’s creditors and clients. To be eligible for refunds, customers must create a separate account, pass a KYC check, and submit necessary tax forms.
Customers are expected to be reimbursed 129% to 146% of their claims in fiat currency. However, many creditors believe the exchange should pay back the amount in crypto, as the market value of crypto assets has increased since 2022. FTX owes customers about $8 billion, but CEO John J. Ray earns $1,575 per hour.
The bankrupt trading platform is facing $24 billion in back taxes, more than three times the amount available for creditor compensation. FTX’s former CEO, Sam Bankman-Fried, has been found guilty of seven counts, including money laundering and conspiracy, and sentenced to nearly 25 years in prison.
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