Bloomberg: FTX Has Billions More Than Needed to Pay Bankruptcy Victims

By AnonymousTurtle @ 2024-05-08T10:43 (+50)

This is a linkpost to https://www.bloomberg.com/news/articles/2024-05-07/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims

Once it finishes selling all of its assets, the company will have as much as $16.3 billion in cash to distribute, according to a company statement. It owes customers and other non-governmental creditors about $11 billion.

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.

Financial Times: Most FTX account holders will get their money back after bankruptcy