FTX Commits to Fulfill its Pledge: Assures Full Customer Reimbursement, Abandons Exchange Revival Strategy

FTX, the insolvent cryptocurrency exchange, has informed the presiding judge that customers and creditors who can provide evidence of their losses are expected to receive full reimbursement. Simultaneously, the company has rejected any plans to relaunch the exchange. Unfortunately, this news has caused the initial increase in the value of the FTT token to reverse, resulting in a 15% decline today.
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FTX Anticipates Compensation
During a recent court hearing on Wednesday, FTX’s attorney, Andrew Dietderich, stated that the company is optimistic about having sufficient funds to fully compensate all valid claims from customers and creditors.
JUST IN: FTX expects to repay its crypto customers in full.
— Watcher.Guru (@WatcherGuru)
January 31, 2024
The reimbursement plan involves assessing the cryptocurrency prices at which customers made purchases in November 2022, when FTX encountered financial difficulties. Despite this positive outlook, Dietderich acknowledges the challenges involved in the process. The company must carefully scrutinize each claim to verify its legitimacy, a task that presents complexities in recovering lost funds.
Dietderich emphasizes that their optimism should not be perceived as a guarantee, but rather as an objective. He highlights the substantial amount of work and risks involved but expresses confidence in the feasibility of the objective, citing a devised strategy to accomplish it.
No Plans to Restart Crypto Exchange
Furthermore, FTX’s attorney, Andrew Dietderich, stated that the company no longer intends to resume its operations, putting an end to previous speculations.
Dietderich dismissed any notion that the business was thriving, labeling it as an irresponsible deception perpetrated by a convicted felon, referring to the founder and former CEO, Sam Bankman-Fried.
Claims Assessment and Complications
FTX faced a significant challenge with over 36,000 claims amounting to approximately $16 billion. Last year, they were uncertain if they could repay everyone, estimating it to be around 90% of the customers. However, FTX is now more optimistic, believing they have sufficient funds to fulfill all valid claims from customers and creditors.
FTX Token Experiences a Setback
After FTX announced their plans to reimburse customers and not relaunch the exchange, the value of their native coin, FTT, initially surged by over 11%. However, it subsequently declined significantly, dropping by 15% on Wednesday. Currently, the FTT token is valued at $1.87, representing a 30% decrease within 24 hours. This indicates uncertainty among people regarding the future of FTX, particularly with the legal troubles faced by its founder.