FOX Business’ Kelly O’Grady reports on the trial of former FTX CEO Sam Bankman Freed after he was found guilty on seven counts of criminal fraud.
Bankrupt cryptocurrency exchange FTX said most customers will be fully repaid for the assets lost during its bankruptcy nearly two years ago, and some will receive more.
The company said in a press release that 98% of FTX customers will receive at least 118% of their billed amount, and other customers will receive 100% plus compensation for the time value of money in the billions of dollars.
On January 3, 2023, former FTX CEO Sam Bankman Fried will take the stand before U.S. District Judge Lewis Kaplan in Manhattan Federal Court, New York. (ED JONES/AFP via Getty Images/Getty Images)
The plan still needs bankruptcy court approval, but FTX founder and former CEO Sam Bankman Fried has been sentenced to 25 years in prison for defrauding the exchange’s customers and investors. It was announced after the verdict was handed down in 2017.
FTX founder Sam Bankman Freed says he regrets it and is ‘obsessed’ in interview after sentencing
The debtors pointed out that FTX only held 0.1% of Bitcoin and 1.2% of Ethereum customers believed the exchange would be afloat during the crash, in order to make their customers whole. He said he was unable to take advantage of the surge in the value of crypto assets. In the midst of a “bank run” in November 2022.
Instead, FTX said it was able to recover most of its funds from proprietary investments and litigation claims made by FTX and its sister hedge fund Alameda Research.
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“We are in a position to propose a Chapter 11 plan that considers repayment of 100% of the bankruptcy debt, plus interest to non-governmental creditors,” FTX CEO John Ray III said in a statement. I’m happy,” he said.
John Ray, CEO of the FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the FTX bankruptcy on December 13, 2022 in Washington, DC. (Al Drago/Bloomberg via Getty Images/Getty Images)
He continued, “I would like to thank many government agencies, including the U.S. Department of Justice, the Commodity Futures Trading Commission, the Internal Revenue Service, and the Bahamas Securities Commission, for their tireless efforts, cooperation, and support throughout this complex recovery process. “It represented.” ”
