Former FTX Customers To Be Paid In Full… Kind Of

Former customers of bankrupt exchange FTX are to be paid in full according to an attorney for debtors.

• FTX lawyer Andrew Dietderich told a judge: "We currently anticipate that we will have sufficient funds to pay all allowed customer and creditor claims in full.”

Um, how? By unloading assets and hoarding cash.

• For one, the company is looking to offload it’s 8% stake in AI company Anthropic. The OpenAI competitor recently sought to raise money at an $18 billion valuation, putting the stake at $1.4 billion.

• FTX has also been on a selling spree of cryptoassets it had on its balance sheet. In December, the company reported it had raised $1.8 billion by selling off some of the firm’s digital assets, with more to come.

Yes, but… Creditors will only be paid back for their losses at the time of FTXs bankruptcy. That means they won’t get a piece of any of crypto’s latest bull run.

Who’s not getting paid? Any of the VCs that invested the more than $2 billion raised by FTX.

What else? Any plans to restart the exchange are in the trash heap. According to Dietderich, “after an exhaustive effort, no investor is ready to commit the needed capital to a restart of the offshore exchange."