People who lost their money in FTX, once one of the biggest cryptocurrency exchanges in the world, are to be paid back, with interest.
Billions were lost when the cryptocurrency exchange headed by convicted fraudsterSam Bankman Fried went bust in November 2022, with an estimated one million customers losing funds.
But now the company has recouped more than enough to repay those customers and its creditors, it said.
Paying people back
If plans are approved by a US bankruptcy court, people who held cryptocurrency, such as Bitcoin, with the exchange will be able to get the sums back. Some will be able to get up to 9% more in interest.
Between $14.5 (£11.6bn) and $16.3bn (£13.04bn) is available to be distributed, FTX said, the combined value of property collected and converted to cash.
Its debts, however, only add up to about $11bn (£8.81bn).
FTX has been able to monetise "an extraordinarily diverse collection of assets", most of which were investments made by FTX or its investment company Alameda Research, it said.
The vast majority of creditors - 98% - will get 118% of the amount due and receive it within 60 days of FTX's proposed plan coming into effect.
These are people or organisations owed $50,000 or less by FTX.
The fall of FTX
Mr Bankman Fried was found to have lied to investors and to have stolen billions of customer funds to make political donations, bribe officials and fund his life in the Bahamas.
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At the time of its collapse, FTX held only 0.1% of Bitcoin and only 1.2% of another cryptocurrency, Ethereum, that customers thought it held.
As reports of the troubles at the firm brewed customers rushed to withdraw their crypto from the company. Many were then locked out of their accounts and unable to make withdrawals.
Mr Bankman's belief - effective altruism
A key belief for Mr Bankman Fried which he championed - and was the raison d'etre for founding FTX - was effective altruism.
Proponents of effective altruism believe in earning as much money as possible and using evidence-based approaches to benefit humanity as much as possible with the cash.
The £14.9m UK manor home nicknamed Effective Altruism Castle is being sold, just two years after being bought by the Effective Ventures Foundation (EV), which had been supported by FTX.
Wytham Abbey, outside Oxford, is currently up for sale at £15m.
"The proceeds of the sale, after the cost of sale is covered, will be allocated to high-impact charities," said the chief executive of EV UK Rob Gledhill.
Nearly all FTX customers are getting their money back: What to know. FTX founder Sam Bankman-Fried
Sam Bankman-Fried
Samuel Benjamin Bankman-Fried (born March 5, 1992), commonly known as SBF, is an American entrepreneur who was convicted of fraud and related crimes in November 2023.
https://en.wikipedia.org › wiki › Sam_Bankman-Fried
, left, arrives at a federal courthouse in Manhattan on Feb. 16, 2023. Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago.
FTX customers are set to recover all funds lost, plus interest. Bankruptcy lawyers say they have collected $14.5 billion to $16.3 billion and are ready to distribute it to defrauded customers.
Login to the Customer Claims Portal using the same username and password you used to create your FTX account. If you opted to sign in with your Google or Apple account, login using the applicable method. FTX account: Email, SMS or Authenticator app. Click Submit.
FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy.
FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.
Since filing for bankruptcy, FTX has recovered up to $16 billion to repay customers, including about $12 billion in cash, and it says it will repay all customer claims in full, with interest.
With about $16 billion in recovered funds, FTX customers can expect to be repaid 'in full, with interest.' However, there is one, major caveat: Their repayments are based on a bitcoin price of $16,871. Obviously, many victims have objected to this plan.
It is recommended to gather the necessary records so you can provide evidence for your claim of the capital loss whenever clear confirmation is provided from regulators. Important records to substantiate the FTX loss could include: Records of the cost basis of the lost assets. all transaction records from FTX.
The collapsed cryptocurrency exchange, which owes creditors about $11.2 billion, has between $14.5 billion and $16.3 billion available to distribute to them.
The deadline for electronic claims submission has been set for May 15, 2024. The claims portal is expected to start its first distribution in late 2024 or early 2025, with all eligible claims denominated in United States dollars.
FTX Trading Ltd. reached a $4 billion bankruptcy settlement with the Commodity Futures Trading Commission, resolving massive fraud claims against the collapsed cryptocurrency firm through a customer-friendly deal.
Ray's team now says it expects 98% of FTX creditors to receive approximately 118% of the amount of their claims. The bankruptcy managers tracked down all of FTX's crypto and other holdings and hired an investment manager to sell them.
All of FTX's creditors, except the government, will get 100% of their money back in cash plus interest, the bankrupt cryptocurrency exchange's estate said late Tuesday.
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