FTX Customers to Receive Refunds for Missing Assets
After a thorough investigation, it has been revealed that a significant amount of funds are missing from FTX customer assets. To address this issue, FTX Trading Ltd and its associated debtors have proposed a settlement that aims to refund the majority of lost crypto and financial assets back to customers.
Settlement Agreement Reached in FTX Bankruptcy Case
The debtors of FTX have agreed to settle the pending Chapter 11 court case known as the “Customer Shortfall Case.” The proposed resolution offers FTX customers over 90% of their missing assets by the end of Q2 2024. The debtors have also put forward a reimbursement of $9 billion for FTX.com and $166 million for FTX.US.
The assets will be segregated into three portions: one for the benefit of FTX.com, another for FTX.US, and a general pool for any other asset. The proposal is expected to be approved by the Bankruptcy Court, allowing victims of the crypto exchange failure to be compensated.
FTX Executive Reveals Knowledge of Missing Funds
An FTX Deputy named Nishad Singh, who is a key witness in the fraud trial of FTX founder Sam Bankman-Fried, has testified in a New York court that he was aware of the billions of dollars in missing customer funds. Singh confronted Bankman-Fried about the misappropriation of customer assets to Alameda Research, a crypto trading firm co-founded by Bankman-Fried.
Singh expressed concern about Bankman-Fried’s extravagant lifestyle and suggested that he was fully aware of accounting discrepancies regarding customer funds. Despite attempting to resign from FTX, Singh was convinced by Bankman-Fried to continue working and recover some of the lost funds.
Singh has pleaded guilty to fraud charges and is cooperating with prosecutors in the trial. Bankman-Fried, on the other hand, has pleaded not guilty and is defending his innocence in court.
Hot Take: FTX Customers Closer to Recovering Lost Assets
The proposed settlement between FTX debtors and customers offers hope for those who lost funds in the FTX exchange failure. If approved by the Bankruptcy Court, customers could receive over 90% of their missing assets by Q2 2024. This development marks a significant step towards compensating victims and resolving the financial disaster.
By
By
By
By