The victims of FTX's bankruptcy in November 2022 could soon be reimbursed. Currently, expectations are that the majority of customers could recover 118% of their initial investment, a return that exceeds the nominal value.
The calculation of this refund is based on November 2022 prices, in compliance with the requirements of bankruptcy legislation, a common method in bankruptcy proceedings, including in the cryptocurrency sector. This method sets the price at the time of bankruptcy to guard against asset volatility, protecting creditors from both upward and downward fluctuations.
In order to make these repayments, FTX is relying on rising prices for certain assets such as Solana and has sold significant stakes in companies such as Anthropic, an artificial intelligence start-up. FTX has also launched several lawsuits to recover funds inappropriately distributed under Sam Bankman-Fried's leadership, thereby increasing the potential funds available to repay creditors. These legal proceedings are still ongoing.
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