FTX Has Billions More Than Needed to Pay Bankruptcy Victims
- Crypto customers to get interest on what FTX owes them
- Bankrupt firm updates plan to divide cash among creditors
Sam Bankman-Fried
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
Cryptocurrency exchange FTX has amassed billions of dollars more than it needs to cover what customers lost in its November 2022 collapse, setting them up to receive full recoveries, plus interest, a rare outcome in US bankruptcy proceedings.
Lower-ranking creditors typically receive just pennies on the dollar for their holdings, but FTX benefitted from a strong rally in cryptocurrencies including Solana, a token heavily backed by convicted fraudster and FTX founder Sam Bankman-Fried. The company has also sold dozens of other assets, including various venture-capital projects like a stake in the artificial-intelligence company Anthropic.