FTX, one of the largest cryptocurrency exchanges, recently faced a court hearing and has now declared bankruptcy. The company, led by its founder Sam Bankman-Fried, has been involved in one of the biggest financial crimes in United States history.
Despite this setback, FTX has announced that it plans to fully refund all affected crypto users. Rumors of a potential relaunch during the bankruptcy process have been circulating, but the company has clarified that this will not be happening. After failing to find any buyers for the platform, FTX has abandoned its plans for a relaunch.
In a tweet, Watcher.Guru reported that FTX anticipates repaying its customers in full. This news comes as a relief to the millions of affected users. Additionally, FTX is facing a lawsuit from the parents of SBF, its former CEO.
In 2022, FTX collapsed, causing chaos in the cryptocurrency industry. It was soon revealed as one of the largest financial fraud schemes ever. The collapse of the company, led by Sam Bankman-Fried, has had a major impact on the financial security of its investors. FTX would go on to file for Chapter 11 bankruptcy, with the potential of losing billions of dollars.
However, there is hope for the affected customers. FTX has stated that it intends to fully repay all customers who hold crypto during the bankruptcy liquidation. In a court proceeding, it was confirmed that the plans for a relaunch had been abandoned. FTX had previously sought to restart the exchange under a new regime, but no buyers were interested in purchasing the FTX name.
According to The Wall Street Journal, FTX was facing over 36,000 customer claims totaling $16 billion. It is a relief to know that the company intends to repay its customers in full during the bankruptcy process.
Source: Bloomberg
In addition to this recent news, it has been reported that FTX sold $500 million worth of cryptocurrency in December 2023. This serves as a reminder of the potential risks involved in the cryptocurrency market.
FTX’s plans for a relaunch may have been abandoned, but the company remains committed to repaying its customers. As the bankruptcy process continues, affected users can rest assured that they will receive their funds back in full.
