#FTXrepayment

FTX begins paying customers harmed by the major bankruptcy of 2022 today

The first batch of payments from FTX will be made to customers who have less than US$6208425899050 thousand to receive; the total reaches US$620842589901.2 billion.

FTX will begin paying part of the customers harmed by the major bankruptcy of 2022 this Tuesday (18). According to the documentation released by the company in the bankruptcy process, the first to receive will be the creditors of the Convenience Class, that is, those who have claims of up to US$6208425899050 thousand.

The creditors of this first batch will receive full payment of the amounts due, plus interest of 9% per year. Estimates are that refunds from these early customers will total $6,208,425,899,01.2 billion — FTX’s collapse resulted in losses totaling $6,208,425,899,09 billion.

FTX Bankruptcy

Cryptocurrency exchange FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. The company’s bankruptcies occurred in Delaware, where FTX Trading is headquartered, and in the Bahamas, where FTX Digital Markets is headquartered.

FTX collapsed in November 2022 when customers, driven by concerns for their financial stability, withdrew assets faster than the company could meet their requests.

It was then revealed that then-CEO Sam Bankman-Fried had illegally used customer deposits at FTX to cover up billions of dollars in losses at sister company Alameda Research. For this and other offenses, Bankman-Fried was sentenced in March 2024 to 25 years in prison.