The Crypto Roundup: 01 February 2024 | CryptoCompare.com

Collapsed cryptocurrency exchange FTX has informed the judge handling its insolvency case that customers and creditors who provide their losses are expected to receive all of their money back.

The company’s lawyer, Andrew Dietderich, noted that while its goal is to fully reimburse its creditors, this “is not as a guarantee,but as an objective,” as there is “still a great amount of work, and risk, between us and that result.” Restructure advisors will have to sift through the millions of claims filed to weed out fraudulent ones.

Dietderich has also added that the team overseeing the firm has abandoned its plans to either relaunch or sell FTX over the expected excessive costs and risks involved.

Despite efforts to attract investment for reviving FTX.com, no investors were willing to finance the initiative, he said. Since taking over, the team has been focused on locating assets and resolving the intricate debts owed to various creditors, with FTX’s four largest affiliates doubling the group’s cash pile to $4.4 billion at the end of last year, up from $2.3 billion.

The company recently asked the court to approve a process to determine its debt to each creditor. US Bankruptcy Judge John Dorsey decided that the amount of each claim would depend on what the company owed them on the day it went bankrupt, and set the guidelines for figuring out the debts to each creditor and customer.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/feb/01/