FTX Creditors Will Get Paid In Full. They Just Want Crypto Back. (2024)

FAQs

FTX Creditors Will Get Paid In Full. They Just Want Crypto Back.? ›

While FTX said it expects to collect enough cash to pay them 100% of what they're owed, plus interest, there's a catch. They're not getting their crypto back. Instead, they're getting US dollars based on what the accounts were worth when FTX went bust in November 2022.

FTX says most customers of the bankrupt crypto exchange will get all their money back. Almost all customers of collapsed cryptocurrency exchange FTX will get their money back — and more, according to a court filing. FTX estimates that it owes creditors around $11.2 billion.

27, 2022, in Minneapolis. 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 now says that 98% of its creditors, including individual investors who had US$50,000 or less with FTX, will receive the funds they lost. Payments will be made in cash within 60 days of a reorganisation plan going into effect. However, this plan still needs to be approved by a US bankruptcy court and by creditors.

If you have crypto or funds at an exchange that declares bankruptcy, you'll need to file a claim and wait for the process to complete. Claims filed at a bankrupt exchange are paid out in order of creditor priority. Cryptocurrency holdings are not protected by government-backed insurance.

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.

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.

FTX customers will get their money back and more—but the biggest winners are bankruptcy traders. Sam Bankman-Fried, the former CEO of FTX, is serving a 25-year sentence. In a rare outcome for bankruptcy, customers of the failed cryptocurrency exchange FTX will recover all of their money—and then some.

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.

Nearly all of FTX's former customers will get back almost 100% of the money they lost at the time of the cryptocurrency exchange's collapse — if not more.

How many people does FTX owe? ›

FTX Has Billions More Than It Needs to Repay Its More Than Two Million Customers - Bloomberg.

FTX is now at the center of a massive fraud investigation. Also included in the creditors list are media companies, such as the New York Times and Wall Street Journal, commercial airliners, including American, United, Southwest and Spirit, as well as several Big Tech players, including Netflix, Apple and Meta.

Per bankruptcy law, anyone owed money as a result of FTX's insolvency will only be able to claim assets based on their value when FTX filed for bankruptcy: November 11, 2022. Investors looking to be made whole have pushed back on the idea, as well as FTX's decision to value its own token as worthless.

In some cases, it may be possible to recover a portion or all of the funds through legal means or assistance from law enforcement agencies. However, it's important to note that recovering funds from cryptocurrency scams can be challenging, and in many instances, complete recovery may not be possible.

It is a common misconception that bitcoin and other cryptocurrencies cannot be garnished. Bitcoin accounts held at U.S. institutions like Coinbase can be taken by a judgment creditor. Many people believe cryptocurrency, such as bitcoin, might be the holy grail of asset protection.

Authorities can seize your bitcoins only if they obtain the private keys or if they coerce you into giving them access to your wallet. Taxes depend on the laws of your local jurisdiction.

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.

You can sell your FTX claims without waiting for estate distributions and reclaim your assets quickly. No minimum claim size required.