FTX Aims Repay Customers, ‘FTX 2.0’ Off The Table: ‘The Objective Is Within Reach’ (UPDATED)
By Benzinga
Editor's note: This story has been updated with more details.
In a new development in the FTX (CRYPTO: FTT) bankruptcy case, the defunct crypto exchange has expressed its intention to fully compensate customers and creditors who can validate their losses.
The commitment was communicated to the judge presiding over the insolvency proceedings.
During a court hearing in Wilmington, Delaware, on Wednesday, FTX's lawyer, Andrew Dietderich, emphasized the need for a thorough review of the multitude of claims filed against the exchange.
“I would like the court and stakeholders to understand this not as a guarantee, but as an objective. There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach and we have a strategy to achieve it," Dietderich said.
FTX, which declared bankruptcy in 2022, saw its founder Sam Bankman-Fried relinquish control of the company to legal and insolvency professionals.
Since the bankruptcy filing, restructuring advisers have been working to recover assets and resolve the intricate network of debts owed to various creditors, including customers who invested cash and cryptocurrency in the trading platform.
The case is before the U.S. Bankruptcy Court for the District of Delaware.
Following this announcement, FTX's native token FTT (CRYPTO: FTT) saw volatile trading, initially surging 11% on the news, followed by a strong retrace. It is down 15% over the last 24 hours.
Sam Bankman-Fried, the former head of FTX, was convicted last year for misappropriating customer funds before the exchange's collapse in late 2022.
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