Market Reviews

How FTX will return money to its customers



After the collapse of the FTX crypto currency exchange, long trials and proceedings, part of the funds that the exchange management failed to steal were frozen and are awaiting permission from the authorities to be sold. The exchange today unveiled its latest proposal to return billions of dollars to customers and creditors, kicking off the latest round of potential debate over the best way to end the company’s bankruptcy case. The payout plan calls for billions of dollars in cash to be distributed once most of the company’s cryptocurrencies are liquidated. The plan will be sent to creditors for a vote next year, likely with key details added, before it goes to U.S. Bankruptcy Judge John Dorsey for final approval. Such cases very rarely end in favor of retail clients, but if this happens and the company returns the money, then such events will attract even more clients to cryptocurrency trading exchanges.