FTX planning to payback customers, small account holders on the priority list

Crypto scam (FTX) :

FTX has submitted file to the court to highlight the financial situation of the company, which provides some hope to the customers to pay back their money with small bonus.

 

FTX recently shared some important news in a document they submitted to the court on May 8, 2024. According to this document, FTX thinks it owes about $11.2 billion to its creditors. But here's the interesting part - they also have somewhere between $14.5 billion and $16.3 billion to give back. So, there might be enough money to pay back most of the people they owe.

The plan outlined in the filing gives priority to smaller accounts. Customers with claims of $50,000 or less, which make up about 98% of creditors, could receive approximately 118% of their claim. This suggests they might even receive a little extra on top of what they initially deposited.

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While this news brings optimism for FTX customers, especially those with smaller accounts, the actual repayment process might take some time. The timeline for repayment is uncertain, and the court needs to approve the reorganization plan outlined in the filing. Additionally, there could be legal challenges that might delay or modify the repayment process.

For customers with claims exceeding $50,000, the situation is less clear. The court filing doesn't specify the recovery percentage for these larger claims, leaving some uncertainty for those individuals.

This news brings some hope for FTX customers, especially those with smaller accounts. But there are still some things we don't know for sure, like when everyone will get their money and how much the bigger accounts will get back.