$FTT The U.S. Bankruptcy Court has formally approved the liquidation plan of cryptocurrency exchange FTX, paving the way for it to use $16 billion in recovered assets to repay customers, the ruling was made by Judge John Dorsey at a court hearing in Wilmington. The court approved the FTX settlement. The approved plan includes a series of settlements with FTX customers, creditors, U.S. government agencies, and the liquidator responsible for managing the company's operations outside the United States.
These settlements prioritize repayments to customers before resolving claims from government regulators, allowing FTX to effectively use its assets in the repayment process.
Under the approved plan, FTX customers will receive at least 118% of their account value by November 2022, the month the failed cryptocurrency exchange filed for bankruptcy.
Customer reactions are still mixed
According to Reuters, FTX described the result as a victory for creditors and attributed it to the successful recovery of cash and crypto assets that were initially missing in the chaos of the company's collapse. In addition, FTX has raised more funds by liquidating other assets, including investments in various tech companies such as artificial intelligence (AI) startup Anthropic.
However, customer reactions to the repayment plan have been mixed. Many former users of the exchange have expressed disappointment that FTX's collapse has prevented them from taking advantage of the sharp rebound in cryptocurrency prices since the market hit its lowest point in 2022.
Some customers have objected to the plan, arguing that the higher repayment amount reflects the recent growth in the value of cryptocurrencies. FTX insists that it cannot simply return customers' originally deposited crypto assets because they have been misappropriated by founder Sam Bankman-Fried.
Bankman-Fried was sentenced to 25 years in prison in March for defrauding FTX customers and has since appealed his conviction, further complicating the consequences of the exchange's collapse.
As of this writing, the exchange's native token FTT has jumped 20% to the $3 mark for the first time in nearly eight months amid an uptrend in the first quarter of this year. CoinGecko data also shows that FTT's trading volume has increased significantly by 176% in the past few hours, but it is still down nearly 97% from its all-time high of $84 reached in September 2021.
First appeared on Crypto Breaking News.
These settlements prioritize repayments to customers before resolving claims from government regulators, allowing FTX to effectively use its assets in the repayment process.
Under the approved plan, FTX customers will receive at least 118% of their account value by November 2022, the month the failed cryptocurrency exchange filed for bankruptcy.
Customer reactions are still mixed
According to Reuters, FTX described the result as a victory for creditors and attributed it to the successful recovery of cash and crypto assets that were initially missing in the chaos of the company's collapse. In addition, FTX has raised more funds by liquidating other assets, including investments in various tech companies such as artificial intelligence (AI) startup Anthropic.
However, customer reactions to the repayment plan have been mixed. Many former users of the exchange have expressed disappointment that FTX's collapse has prevented them from taking advantage of the sharp rebound in cryptocurrency prices since the market hit its lowest point in 2022.
Some customers have objected to the plan, arguing that the higher repayment amount reflects the recent growth in the value of cryptocurrencies. FTX insists that it cannot simply return customers' originally deposited crypto assets because they have been misappropriated by founder Sam Bankman-Fried.
Bankman-Fried was sentenced to 25 years in prison in March for defrauding FTX customers and has since appealed his conviction, further complicating the consequences of the exchange's collapse.
As of this writing, the exchange's native token FTT has jumped 20% to the $3 mark for the first time in nearly eight months amid an uptrend in the first quarter of this year. CoinGecko data also shows that FTT's trading volume has increased significantly by 176% in the past few hours, but it is still down nearly 97% from its all-time high of $84 reached in September 2021.
First appeared on Crypto Breaking News.