FTX, a bankrupt cryptocurrency exchange, has confirmed it will repay the full $11 billion owed to creditors due to the rising value of Bitcoin driving market fluctuations.
John Ray III, FTX’s new CEO succeeding Sam Bankman Fried, assured repayment by selling off remaining assets, potentially totaling over $16 billion.
A Chapter 11 plan is in motion to repay all debts plus interest to creditors, fueled by the surge in Bitcoin price from $20,000 in 2022 to over three times that today.
Despite debts in dollars and assets in speculative digital products and startup stocks, FTX is on track for repayment. Former platform users, now creditors, may not be pleased with selling off crypto holdings at lower prices.
FTX’s investment in Anthropic, an AI startup, proved beneficial, with a major stake sale fetching $824 million. Founder Bankman Fried’s imprisonment for fraudulent bankruptcy highlights Ray’s intervention to prevent further financial turmoil.
Legal proceedings continue with hopes for creditor repayment approval. Ray’s previous experience with Enron’s bankruptcy management lends expertise to FTX’s financial revival.
Source: www.theguardian.com
