Finst

FTX customers are fully compensated

The bankrupt crypto exchange FTX apparently plans to fully compensate former customers, according to a court hearing.

By Luc Vesters
• 1 min read
FTX customers are fully compensated

The bankrupt crypto exchange FTX apparently plans to fully compensate former customers, according to a court hearing. The compensation claims relate to the time FTX went bankrupt.

Kris Hansen, attorney for FTX's creditors' committee, criticized this decision. Many cryptocurrencies are now worth less: "Many of these claims are based on currencies that fell dramatically in value in the turbulent period before the application date."

The exchange is also unlikely to get a fresh start. The company had not found buyers, the lawsuit said. According to the Wall Street Journal the claims amount to $16 billion.

FTX went under in late 2022. Its former boss, Sam Bankman-Fried, was found guilty of fraud. His verdict is expected in March. The exchange's cryptocurrency, FTT, is down 25 percent from the previous day.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.