FTX Commits to Full Customer Repayment Despite Exchange Closure
FTX cryptocurrency exchange will not be rebooted due to lack of buyer interest, but plans to fully repay customers and unsecured creditors affected by its sudden shutdown in November 2022. The company's Chapter 11 plan involves recovering funds from associated companies and selling cryptocurrency holdings to fund repayments, with a goal to repay all "allowed" customers and creditors by February 2023. FTX's lawyer described difficulties in finding buyers and criticized the failed leadership of co-founder and former CEO Sam Bankman-Fried, who was convicted of federal fraud charges. The FTT cryptocurrency token briefly spiked in price but then rapidly plunged as holders sold off their tokens.