FTX plans to repay customers in full – exchange will not reopen | CoinDesk JAPAN

Bankrupt cryptocurrency exchange FTX, run by Sam Bankman-Fried, has said it plans to fully repay its customers. This was revealed during a court hearing.

Based on the actual time of FTX’s bankruptcy

Unfortunately for those waiting for repayments, the full recovery of customer assets is based on the time of FTX’s actual bankruptcy, when the market was already in turmoil. That date, approved in advance by U.S. Bankruptcy Judge John Dorsey, has been a point of contention for some claimants.

Bitcoin (BTC) price has recovered to over $43,000 (approximately 6,235,000 yen, equivalent to 145 yen to the dollar) as of the publication of this article, and is about 20,000 yen at the time of FTX’s bankruptcy in early November 2022. That’s a 110% increase from the $500 price.

“Many of these claims are based on currencies that have fallen dramatically in value during the turbulent period leading up to the filing date,” Kris Hansen, an attorney for the FTX creditors committee, said at the Jan. 31 hearing. “There is,” he said.

Abandoning plans to reopen the exchange

FTX attorney Andrew Dietderich said the repayment process being considered in U.S. bankruptcy court would require claimants to provide evidence that they held assets in FTX that they later lost. , restructuring advisors will scrutinize these matters. According to court proceedings, FTX abandoned plans to reopen the exchange due to the lack of buyers and shifted its focus to compensating former customers.

Today’s court effort is aimed at moving the case forward by allowing multiple creditor camps to secure approval from retail investors for this latest approach. According to data from bankruptcy debt exchange Xclaim, approximately 15 million people lost a total of $30 billion to $35 billion worth of various crypto assets following FTX’s collapse.

Native token FTT falls

FTX’s native token, FTT, soared more than 11% immediately after news of FTX’s plans broke, but quickly fell sharply, bringing its decline for the day to about 15%.

Bankman Freed was found guilty last year of stealing customers’ funds before going bankrupt in late 2022.

｜Translation and editing: Rinan Hayashi
｜Image: Liz Napolitano/CoinDesk
｜Original text: FTX Expects to Fully Repay Customers but Won’t Restart Defunct Crypto Exchange