FTX expects to repay customers in full, says bankruptcy lawyer
Customers and creditors of bankrupt crypto exchange FTX who can prove their losses will likely get back all of their money, the company told the judge overseeing the insolvency case.
Restructuring advisers will need to examine all of the millions of claims that have been filed against FTX to weed out those that are not legitimate, lawyer Andrew Dietderich said during a Wednesday court hearing in Wilmington, Delaware.
“I would like the court and stakeholders to understand this not as a guarantee, but as an objective,” Dietderich said. “There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach and we have a strategy to achieve it.”
FTX filed bankruptcy in 2022 after founder Sam Bankman-Fried shut down the crypto firm and handed control to lawyers and other insolvency experts.
Since the company filed for bankruptcy, restructuring advisers have been tracking down assets and trying to untangle a complex web of debt owed to various creditors, including customers who put cash and crypto on the trading platform.
The case is FTX Trading Ltd., 22-11068, US Bankruptcy Court for the District of Delaware.
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Published: 31 Jan 2024, 10:34 PM IST
