Story Highlights
FTX will compensate all valid claims from customers and creditors, but has no plans to restart operations.
The company believes they have enough money to pay back everyone, but the process will be complex.
FTT token price initially surged after the announcement but later dropped 15%, indicating uncertainty.
Well, this comes as a surprising development for all! FTX, the bankrupt cryptocurrency exchange, has assured its customers and creditors that they stand to recover their entire funds, provided they can prove their losses. However, the announcement has cast a shadow on the FTT token, which initially surged but suffered a 15% downturn today.
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Compensations on the Way?
During a recent court hearing on Wednesday, FTX’s legal representative, Andrew Dietderich, conveyed the company’s optimism regarding its ability to fully compensate valid claims from both customers and creditors.
JUST IN: FTX expects to repay its crypto customers in full.
— Watcher.Guru (@WatcherGuru)
January 31, 2024
The reimbursement strategy involves assessing cryptocurrency prices from November 2022, a crucial period when FTX grappled with financial turmoil. Despite the positive outlook, Dietderich acknowledged the intricacies of the process, underscoring the challenges in verifying the legitimacy of each claim and the complexity of recovering lost funds.
While Dietderich emphasized that their optimism is not a guarantee but an objective, he did not shy away from acknowledging the substantial amount of work and risks associated with the compensation plan. However, he expressed confidence in the company’s devised strategy to overcome these challenges.
Read More:
FTX’s Cash Crunch: Unloading Crypto to Settle Customer Claims, Cash Reserves Reach $4.4B
No Plans to Restart
Further, FTX lawyer Andrew Dietderich said that the company no longer has plans to restart its operations, putting an end to previous rumors.
Dietderich dismissed any notion that the business was doing well, labeling it as an irresponsible sham created by a convicted felon, referring to the founder and former
CEO Sam Bankman-Fried
.
A Wild Roller Coaster
FTX faced a massive challenge with more than 36,000 claims totaling around $16 billion. Last year, they were unsure if they could pay back everyone, thinking it might only
be about 90%
of the customers. But now, FTX is more positive. They believe they have enough money to pay all the valid claims from customers and creditors.
After FTX shared their plans to pay back and not restart the exchange, their own coin, FTT, first went up more than 11%. But then, it went down a lot, about 15% on Wednesday. As of now, the
FTT token
is
hovering at $1.87
which is down by 30% in 24 hours. This shows that people are unsure about what will happen with FTX, especially as the CEO suffers legal trouble.
Did You Know?
Sam Bankman-Fried Cleared? Prosecutors Drop Remaining Charges as Industry Erupts
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