FTX has 'extra money' to pay off debt to investors

According to CNBC, FTX is estimated to owe customers about $11.2 billion. Based on the reorganization plan filed in the US court, FTX currently has $14.5 billion to $16.3 billion to pay investors. For refunds of $50,000 or less, customers will receive about 118% of the requested amount. FTX said 98% of customers will receive this within 2 months of the plan being approved by the court. After completing the compensation payments, FTX will pay 9% interest to creditors if there is any money left.

FTX Customer Refunds Still Struggle

Since Sam Bankman-Fried stepped down as CEO, FTX has appointed restructuring expert John J. Ray III to replace him. He previously helped energy company Enron Corp. repay billions of dollars to creditors. Ray said that in his 40-year career, he had never seen such a complete failure of corporate governance and such a lack of reliable financial information as FTX.

To address the fallout, the restructuring team sold investments in FTX and Alamed, the cryptocurrency hedge fund Bankman-Fried led. FTX also sold $900 million worth of shares in artificial intelligence (AI) company Anthropic. The company also owned 38 properties in the Bahamas and successfully recovered $2.6 billion in cash.

According to CNBC, the new compensation amount is higher than the figure that FTX estimated in October 2023, when the exchange expected to return only 90% of the amount to customers. By January 2024, Mr. Ray changed his plan and announced that he would return the full amount to investors.

However, many creditors are still not satisfied with the company’s proposal. The debts are denominated in US dollars, while the majority of FTX’s assets are highly speculative assets and shares in promising startups. Clients will only receive an amount equivalent to the value of their holdings at the time of FTX’s collapse, so they will not benefit even if the price of cryptocurrencies recovers. In November 2022, Bitcoin was worth about $20,000. It has now tripled in value.

Source: https://thanhnien.vn/ftx-thua-tien-tra-no-cho-nha-dau-tu-185240430033330314.htm