FTX says it will pay investors after the cryptocurrency exchange's collapse caused a billion-dollar loss. During a court hearing On Wednesday, FTX attorney Andrew Dietderich said the company expects “to have sufficient funds to pay in full all permitted customer and creditor claims.”
The company will reward customers based on the price of the cryptocurrency they purchased in November 2022, when the exchange filed for bankruptcy. However, there are still some challenges associated with returning lost funds to customers, as Dietderich notes, the company will need to review all claims to determine if they are legitimate.
“I would like the court and the interested parties to understand this not as a guarantee, but as a goal,” Dietderich said. “There is still a lot of work and risk between us and that outcome, but we believe the goal is within reach and we have a strategy to achieve it.”
Dietderich also said that the company no longer has plans to restart the exchange, something that was rumored last year. “Hopefully this will put an end to the alternative narrative that this business was fine all along,” Dietderich says. “It was an irresponsible sham, created by a convicted felon.”
