FTX plans to repay customers in full, but exchange will not restart
Bankrupt cryptocurrency exchange FTX said it has abandoned plans to restart the exchange but plans to make full compensation to former customers.
"We currently anticipate that we will have sufficient funds to pay in full all permitted customer and creditor claims," FTX attorney Andrew Dietrich told the judge during Wednesday's hearing. Dietrich also said that FTX does not plan to re-Launch the platform.
"Another disappointment is FTX 2.0. We still have valuable data and information that we can use to continue operating," Dietrich said. "But after unremitting efforts, no investors are willing to invest in restarting the offshore exchange. the funds needed."
"The full payment is based on the petition date value of these claims. Many of these claims are predicated on currencies that have depreciated significantly during the tumultuous period leading up to the petition date," the lawyer said.
The lawyer added that many customers and creditors "won't feel like this is a genuine payment at all from where they started". "But we recognize that the petition date is the date that needs to be used," the attorney continued.
Later in the hearing, the judge granted the debtors' motion to convert the claims in the digital assets into US dollars