-- 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 under the company’s bankruptcy.The extra cash will be used to pay interest to the company’s more than 2 million customers, marking a rare outcome since creditors typically receive just pennies on the dollar in US bankruptcies.
Depending on the type of claim they hold in the case, some creditors could recover as much as 142% of what they are owed. The vast majority of customers, however, will likely get paid 118% of what they had on the FTX platform the day the company entered Chapter 11 bankruptcy. Earlier this year, the company had about $6.4 billion in cash. The increase is due mostly to a general spike in prices for various cryptocurrencies, including Solana, a token heavily backed by convicted fraudster and FTX founder Sam Bankman-Fried. The company has also sold dozens other assets, including various venture-capital projects like a stake in the artificial-intelligence company Anthropic.
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