FTX, in a significant development this week, announced that it has successfully recovered sufficient funds to fully repay defrauded investors and provide the vast majority of them with interest. The failed cryptocurrency exchange platform, which filed for bankruptcy in 2022, submitted a proposal to a federal bankruptcy court late Tuesday for approval. Since its collapse, FTX’s CEO John Ray III, as detailed in a previous write-up, has been diligently working to trace more than $8 billion in missing assets to repay an estimated $11.2 billion owed to creditors.
According to Ray, the company has managed to recover between $14.5 billion and $16.3 billion this week. A substantial portion of these funds is linked to government-seized FTX properties or recovered from investments made by FTX and its sister company in hedge funds, digital assets, and AI startup Anthropic. FTX is also actively pursuing the recovery of payouts made to former company executives and the parents of its convicted founder, Sam Bankman-Fried.
Pending approval, the proposed plan aims to reimburse 98% of customers—specifically, those who invested $50,000 or less—with 118% of their initial investment. A hearing on the dispersal of assets is scheduled for June 25. This development marks a significant milestone in FTX’s journey toward resolving its bankruptcy and fulfilling its obligations to investors and creditors.