FTX, the cryptocurrency exchange that has collapsed, intends to repay investors for the losses they incurred during its downfall.
According to The Verge, FTX lawyer Andrew Dietderich said in a court hearing on Wednesday that the company expects to "have sufficient funds to pay all allowed customer and creditor claims in full."
FTX's Repayment Guaranteed?
The repayment strategy outlined by FTX involves compensating customers based on the cryptocurrency's price as of November 2022, when the exchange filed for bankruptcy.
However, Dietderich acknowledged the challenges ahead, emphasizing the need to scrutinize all claims to validate their legitimacy before disbursing funds. He noted that the statement should not be interpreted as a guarantee but rather as an objective.
Despite admitting the substantial work and risks involved, he expressed confidence in attaining this objective, asserting that the company has "a strategy to achieve it."
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Collapse of FTX
FTX faced a dramatic collapse in November 2022, resulting in the apprehension of its founder and former CEO, Sam Bankman-Fried, who was found guilty of fraud by a federal court last November.
The recent commitment to full repayment indicates a pivotal development in FTX's efforts to address the aftermath of its collapse. FTX previously reported that it had over 36,000 claims for a total of about $16 billion.
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