Home Former FTX customers could soon get their money back in new plan

Former FTX customers could soon get their money back in new plan

TLDR

  • FTX customers will receive refunds, with up to $16.5bn recovered under a bankruptcy plan.
  • The plan enables customers to recover 119% of their holdings, effective 60 days post-approval.
  • FTX’s assets, including AI investments, are being sold to repay $14.7-$16.5bn in claims.

Customers of the cryptocurrency exchange FTX are set to receive refunds, with up to $16.5bn recovered under a bankruptcy plan.

The firm went bankrupt back in November of 2022 leaving customers around the world unable to access their accounts.

The former CEO Sam Bankman-Fried was convicted of stealing customer funds before the collapse and was sentenced to 25 years at the end of March 2024.

Ahead of his sentencing, victims of the collapse had written to the judge to share their thoughts and to attempt to convey the impact that the fraud had on them. A couple in Barcelona, had around $4 million in dollars and Bitcoin in FTX with the husband describing the situation as them having “lost everything.”

FTX bankruptcy plan was approved 

Now, a bankruptcy plan approved in the US on Monday (October 7) will enable customers to recover a sum worth about 119% of what they had in their accounts at the time of bankruptcy, according to FTX.

When the plan is declared effective, with the date yet to be agreed upon, creditors can expect to receive their funds 60 days later.

When FTX declared bankruptcy in late 2022, around $8bn in customer funds were reported missing. This figure doesn’t include debt to investors and others.

John J Ray III, the lawyer who was appointed to handle the bankruptcy process, is reported as saying the approval of the plan was a “significant milestone” in the firm’s efforts to repay the money to people and firms.

“Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history.”

Assets worth $14.7-$16.5bn have been recovered, some of which by selling off FTX’s remaining assets including its investment in AI firm Anthropic.

Featured Image: AI-Generated via Ideogram

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Sophie Atkinson
Tech Journalist

Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.