FTX, under the leadership of CEO John Ray III, has announced plans to fully reimburse all former customers who were defrauded. Legal representatives for FTX's bankruptcy estate have informed a judge that they anticipate having sufficient funds to fully repay customers and creditors with legitimate claims against the company.
In 2022, FTX's collapse led to losses amounting to billions of dollars for up to a million customers. The new CEO has been striving to recover as much of the lost money as possible since assuming control of the company. According to CNBC, over $7 billion has already been recovered and efforts are ongoing to retrieve more. The company's assets have seen a significant increase due to the rebound in various cryptocurrency prices in 2024. For instance, Bitcoin owned by FTX was valued at $560 million in September 2023 but is now worth over $1 billion. Furthermore, an initial investment of $500 million in AI company Anthropic in 2021 has nearly tripled, reaching close to $1.4 billion as the AI market continues its rapid expansion.
FTX is also working on liquidating its assets, even if it results in a loss from the initial investment. According to CoinTelegraph, Digital Custody was sold to CoinList for $500,000 despite an initial purchase price of $10 million.
As FTX works towards repaying its creditors and customers, former CEO Sam Bankman-Fried faces sentencing in March for his role in FTX's 2022 collapse. Bankman-Fried was found guilty on seven criminal counts related to the disappearance of $10 billion in customer funds from the company. CNBC reports that Bankman-Fried used these funds for personal extravagance while also investing heavily into other ventures that have recently appreciated in value.
