Bankrupt FTX reported on Wednesday that it expects to repay all its customers in full. However, it may take longer as it needs to fully investigate whether customers’ attests are legitimate for their loss.
However, individuals who lost their cryptocurrencies will not be paid according to the current Bitcoin price. Since FTX is bankrupt, they will be repaid according to the price when FTX announced its bankruptcy back in November 2022. Although several customers have forwarded their complaints to Judge Dorsey, the judge overruled their complaints and granted FTX the right to settle its debts at the 2022 price.
Customers were complaining that the 2022 price of Bitcoin was almost $19,500 at the time when FTX announced its bankruptcy, but the coin has increased by over 400% in value to $43,000. However, Judge Dorsey said the U.S. bankruptcy law says customers should be repaid for their assets based on the date the company announced its bankruptcy. “I have no wiggle room on that; I’m obligated to follow the law, and that is what I’m doing,” concluded Judge Dorsey.
FTX Will not Restart as a Cryptocurrency Exchange
In June 2023, bankrupt FTX was looking for investors to restart the FTX crypto exchange from scratch, but their effort was worthless. “After exhaustive efforts, no investors are willing to invest in the FTX crypto exchange,” Dietrich FTX Lawyer said. FTX had been negotiating with investors and bidders, but none of the talks was good enough for investors to invest in FTX.
FTX, the cryptocurrency exchange will not be restarted, according to statements made by the company’s bankruptcy lawyers during a court hearing. “Recreating a dumpster that Sam Bankman-Fried left will take a lot of cost and risk,” Dietrich said.
FTX was in court on Wednesday to seek approval of how each customer and creditor was going to be compensated. Judge Dorsey, however, instructed that each creditor would be compensated as per what he or she was owed on that particular day. According to the bankruptcy report, over 15 million customers lost $35 million after the FTX bankruptcy report in November 2022.