Will FTX be able to refund customers? Creating a website to identify losses

Authorities responsible for refunding FTX customers have managed to recover $5 billion in assets, Andrew Dietderich, one of the lawyers for the bankrupt cryptocurrency exchange, announced on Thursday. The money can be returned to the company’s customers.

Billions in liquid assets

This is good news for FTX victims. As planned for weeks, a new session of the FTX platform will take place this Wednesday in the United States of America. In particular, the FTX restructuring team made an important and reassuring announcement during this session.

Liquidators of US cryptocurrency exchange FTX said on Wednesday they had recovered more than $5 billion in assets that could be returned to the firm’s clients and creditors.

“We have recovered over $5 billion in cash, liquid cryptocurrencies and liquid investment securities,” FTX lead attorney Adam Landis said Wednesday in court in Delaware.

Andrew Dietderich, one of the class’s attorneys, explained during the hearing that the assets include cash, as well as “liquid” cryptocurrencies and financial securities, meaning they can be easily converted into specie.

In addition to the $5 billion mentioned on Wednesday, FTX said it controls “illiquid” assets in cryptocurrencies, meaning assets that cannot be sold quickly.

Specifically, this capital is expressed in a highly volatile digital currency which “cannot be sold without affecting the relevant market and reducing the value of this currency”, explained Andrew Dietderich.

Added to this are assets recovered by FTX liquidators in the Bahamas, whose value is estimated at $170 million by the end of 2022.

Not enough to reimburse everyone?

As a reminder, FTX already owes $3.1 billion to 50 major creditors, which will be paid first. Because of this, FTX retail customers may never see their money again.

However, multiple outlets have reported that the total amount FTX owes creditors remains unclear, with the company saying on December 20 that it could only come up with $1 billion to repay its customers.

As a reminder, according to the most recent court records, FTX’s debts range from $1 billion to $13 billion, while assets range from $2 to $5 billion.

On Wednesday, the lawyer also said that FTX “has identified over 9 million customer accounts linked to approximately $120 billion in related transactions.

He said the team is currently going through a process to determine the value of “each client’s” position on Nov. 11, Decrypt reported.

FTX customers invited to come forward

The second-largest platform in the industry, behind Binance, filed for bankruptcy on November 11, taking nearly $8 billion in client funds in its fall.

This disproportionate scandal led to the establishment of new methods. This is how the American court decided to authorize the creation of a website through which the victims, but also the witnesses of the FTX case, can contact the authorities. An unusual procedure for American justice

“If you believe you have been the victim of fraud by Samuel Bankman-Fried, also known as SBF, please contact the Victim and Witness Coordinator at the United States Attorney’s Office,” reads the page, located on the website of the US Department of Justice. .

In practice, it is generally the prosecutor who contacts victims to inform them of their rights. But given the number of people involved, estimated to be around 1 million people, Manhattan District Judge Lewis Kaplan cleared the site for publication.

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