FTX Will Return $16 Billion to Customers Following Court's Bankruptcy Approval
Collapsed crypto exchange FTX was given the green light Monday to execute its bankruptcy plan following nearly two years of recovery efforts.
Customers of collapsed crypto exchange FTX will soon get their money back after a judge gave the green light on Monday to the firm's bankruptcy plan, following nearly two years of recovering funds and reaching various settlements.
Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved the plan to pay back former clients of the exchange using $16 billion recovered since the company collapsed, Reuters reported on Monday.
FTX was one of the best-recognized brands in the crypto space and was on a skyrocketing trajectory, but unexpectedly went bankrupt in November 2022 amid a liquidity crunch.
Co-founder and former CEO Sam Bankman-Fried was arrested, charged and later jailed for fraud and criminally mismanaging the exchange. He is serving a 25-year prison sentence, though his lawyers recently filed an appeal claiming that he was "presumed guilty" going into the trial.
This is a breaking story and will be updated.
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