FTX-Owned Liquid to Return Customer Funds Next Year (2024)

FAQs

Are FTX customers getting money back? ›

Almost all customers of collapsed cryptocurrency exchange FTX will get their money back — and more, according to a court filing. FTX estimates that it owes creditors around $11.2 billion. FTX said that it has between $14.5 billion and $16.3 billion to distribute to creditors.

While some could recover as much as 142% of what they held, the vast majority are likely to receive 118%. The specific pay day is estimated to be months away. While the gains are unusual and impressive, the biggest winners in the FTX affair are those who trade bankruptcy claims.

FTX now says that 98% of its creditors, including individual investors who had US$50,000 or less with FTX, will receive the funds they lost. Payments will be made in cash within 60 days of a reorganisation plan going into effect. However, this plan still needs to be approved by a US bankruptcy court and by creditors.

FTX is repaying its customers through the liquidation of its assets, which have appreciated significantly in value, and through the positive effects of a bullish cryptocurrency market.

The vast majority of FTX customers will likely get 119% of what they had on the platform the day the company filed Chapter 11 in November 2022. Other creditors could recover as much as 143% of what they're owed, according to court documents.

Sam Bankman-Fried, former CEO of the bankrupt cryptocurrency exchange FTX, presided over a spectacular collapse that cost his customers billions of dollars.

Andrew Scurria: What FTX is projecting is that most customers, 98%, which are the retail customers, individual traders, they will get back what they had invested as of the day FTX filed for bankruptcy plus interest to compensate them for the time value of their money, the little less than two years that their crypto ...

On May 7, the company said it expects to have as much as $16.3 billion once it's done selling assets, far more than the approximately $11 billion owed to customers and other private-sector creditors, leaving most of them in line to get 118% of what they had in their FTX accounts.

Many claims are below the minimum size for buyers, meaning you would be left out of the process. Through pooling, you have the opportunity to sell your claim and have a more favorable rate. Our team can help navigate you through this process.

Can I write off my FTX losses? ›

Although the IRS treats cryptocurrency much like stocks and other capital assets, the SEC has not classified cryptocurrency as a security, meaning the IRS might not allow you to write off any frozen and unsold crypto as "worthless." FTX crypto customers may eventually recover some amount, so claiming an FTX account as ...

Kaplan found that FTX customers lost $8 billion, FTX's equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion. He imposed an $11 billion forfeiture order and authorized the government to repay victims with seized assets.

FTX says it will return money to most of its customers FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that.

All of FTX's creditors, except the government, will get 100% of their money back in cash plus interest, the bankrupt cryptocurrency exchange's estate said late Tuesday.

L ast month, lawyers overseeing FTX's bankruptcy filed a reorganization plan that would not only repay nearly all of the failed cryptocurrency exchange's customers in full but give them 18% interest for the period in which their investments were tied up.

When FTX collapsed into bankruptcy in 2022, many customers never thought they'd see their money again. But FTX's assets have rebounded. WSJ's Andrew Scurria unpacks why FTX will have more than enough money to fully repay customers and many creditors.