FTX-Owned Liquid to Return Customer Funds Next Year (2024)

FAQs

Will FTX customers get any money back? ›

FTX bankruptcy: What customers should know about getting crypto and Bitcoin money back. According to the company, all customers will be recouped for their losses—but there's a catch. It's been more than a year since FTX, a one-time mammoth cryptocurrency exchange, collapsed and subsequently declared bankruptcy.

"We lost money in general because the overall portfolio is going down as a result of this debacle, so yes I guess yes," he said when asked about the collapse in November at the Bloomberg New Economy Forum in Singapore.

At trial, the court heard from an accounting expert who said that $11.3bn in customer funds were supposed to be held at Alameda Research, FTX's hedge fund arm. But only $2.3bn could be located. The rest had gone toward investments, political contributions, charity foundations and real estate purchases.

What happened to FTX? FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low on Nov. 9, 2022.

FTX founder Sam Bankman-Fried and senior staff spent customer funds on technology investments, luxury real estate and political contributions, among other things. The missing funds are at the heart of Bankman-Fried's criminal trial, which kicked off in Manhattan federal court this week.

Even as the bankruptcy estate promises to pay back customers in full, many of FTX's thousands of victims (reportedly up to a million) argue that their crypto stakes have been significantly undervalued by the exchange's new leadership team.

In addition to any lasting reputational damage, Brady and his supermodel ex-wife, Gisele Bündchen, have likely lost most or all of the sizable financial stake they had in FTX. The crypto space has long been awash with A-listers.

Mr. Ray estimated in August that FTX had recovered $7 billion, though it was unclear how much of that money would make its way back to creditors, given the number of outstanding claims. Still, claims that once traded for just a few cents on the dollar have surged in value.

Key Takeaways. A new report from the FTX debtors team indicates the failed crypto exchange owes customers $8.7 billion worth of assets. The vast majority of misappropriated assets, roughly $6.4 billion, are denominated in either fiat currency or stablecoins.

Kaplan found that FTX customers lost $8 billion, FTX's equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion. He imposed an $11 billion forfeiture order and authorized the government to repay victims with seized assets.

How much of peoples money did FTX lose? ›

According to the prosecution, Bankman-Fried stole “billions of dollars” from the crypto exchange's customers “out of sheer greed”. One key issue was how much money FTX's customers lost. During the trial, the prosecution and its witnesses repeatedly – in fact, 97 times – put that number at $US8 billion ($12 billion).

FTX collapsed in November 2022 after failing to meet a surge in withdrawal requests. Billions of dollars' worth of customer money was missing. A year later, FTX founder Sam Bankman-Fried was convicted of multiple counts of fraud and conspiracy in connection with the fall of the exchange.

CRUMBLING MARKET CAP

After peaking at $3 trillion in November 2021, the value of the overall crypto market plummeted through 2022, hitting a two-year low of $796 billion as FTX imploded. It has since clawed back some ground, hovering above $1 trillion most of this year.

At the time of its collapse, FTX had around 300 employees.

On the home page of the FTX Digital Claim Portal, please select the “Create Claim” button to initiate the creation of your claims account. You will be required to complete the following steps to create your account: 1. Contact information (including name, telephone number and email address) 2. Type of claimant: a.

NEW YORK (AP) — Crypto entrepreneur Sam Bankman-Fried was sentenced Thursday to 25 years in prison for a massive fraud on hundreds of thousands of customers that unraveled with the collapse of FTX, once one of the world's most popular platforms for exchanging digital currency.

The live price of FTX is $ 1.57243314. FTX price, with a potential surge, could go as high as $4.98 by the end of 2024. FTT price could reach a high of $25.16 by the end of 2030.

FTX Trading Ltd., commonly known as FTX (short for "Futures Exchange"), is a bankrupt company that formerly operated a fraud-ridden cryptocurrency exchange and crypto hedge fund.