Customers of collapsed crypto exchange FTX will soon get their money back after a judge gave the green light on Monday to the firm's bankruptcy plan, following nearly two years of recovering funds and reaching various settlements.
Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved the plan to pay back former clients of the exchange using $16 billion recovered since the company collapsed, Reuters reported on Monday.
FTX was one of the best-recognized brands in the crypto space and was on a skyrocketing trajectory, but unexpectedly went bankrupt in November 2022 amid a liquidity crunch.
Caroline Ellison Gets 2 Years in Prison for FTX, Alameda Crimes
Former Alameda Research CEO Caroline Ellison has been sentenced to two years in prison for defrauding investors of crypto exchange FTX and its sister firm. Judge Lewis Kaplan of the U.S. District Court of the Southern District of New York handed down the sentence, citing Ellison's strong cooperation as a witness against former FTX fraud ringleader Sam Bankman-Fried last fall. “I’ve seen a lot of cooperators in 30 years," said Kaplan, per Bloomberg. I’ve never seen one quite like Ms. Ellison.” El...
Co-founder and former CEO Sam Bankman-Fried was arrested, charged and later jailed for fraud and criminally mismanaging the exchange. He is serving a 25-year prison sentence, though his lawyers recently filed an appeal claiming that he was "presumed guilty" going into the trial.
Customers who used the exchange to buy, sell, or bet on the future prices of cryptocurrencies have been waiting to get their funds back since the firm filed for bankruptcy.
The plan approved Monday will pay the vast majority of customers at least 118% of the U.S. dollar value in their accounts as of November 2022.
Diddy Goes From 'Freak-Offs' to Sharing Jail Unit With Sam Bankman-Fried: NBC
Disgraced hip-hop mogul Sean “Diddy” Combs is reportedly sharing space in jail with crypto crook Sam Bankman-Fried. A Tuesday report by NBC, citing three sources familiar with the matter, said that the two are sharing the same "barrack-style" living space in a unit designed for approximately 18-20 inmates. Combs and Bankman-Fried are currently both being held at the Metropolitan Detention Center in Brooklyn, New York City. SBF Sentenced to 25 Years in Prison—How Many Will He Actually Serve? Fe...
Customers were initially expecting to get back digital assets but the plan—filed in May—will pay them back in cash. Some investors have been upset that they will not be repaid with their original crypto assets, some of which (like Bitcoin) have significantly appreciated in value over the last two years.
Bankman-Fried is serving a 25-year prison sentence, though his lawyers recently filed an appeal claiming that he was “presumed guilty” going into the trial.
Edited by Andrew Hayward
Editor's note: This story was updated after publication with additional details.
