{"id":3272,"date":"2024-05-10T15:23:19","date_gmt":"2024-05-10T15:23:19","guid":{"rendered":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/05\/10\/ftx-investors-to-get-their-money-back-plus-interest\/"},"modified":"2024-05-10T15:23:19","modified_gmt":"2024-05-10T15:23:19","slug":"ftx-investors-to-get-their-money-back-plus-interest","status":"publish","type":"post","link":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/05\/10\/ftx-investors-to-get-their-money-back-plus-interest\/","title":{"rendered":"FTX investors to get their money back \u2013 plus interest"},"content":{"rendered":"
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People who lost their money in FTX, once one of the biggest cryptocurrency exchanges in the world, are to be paid back, with interest. <\/p>\n

Billions were lost when the cryptocurrency exchange headed by convicted fraudster<\/strong> Sam Bankman Fried<\/strong> went bust in November 2022, with an estimated one million customers losing funds.<\/p>\n

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Money latest: Struggling iconic tea brand spends \u00a312m on ad<\/strong><\/p>\n

But now the company has recouped more than enough to repay those customers and its creditors, it said.<\/p>\n

Paying people back<\/strong><\/p>\n

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If plans are approved by a US bankruptcy court, people who held cryptocurrency, such as Bitcoin<\/strong>, with the exchange will be able to get the sums back. Some will be able to get up to 9% more in interest.<\/p>\n

Between $14.5 (\u00a311.6bn) and $16.3bn (\u00a313.04bn) is available to be distributed, FTX<\/strong> said, the combined value of property collected and converted to cash.<\/p>\n

Its debts, however, only add up to about $11bn (\u00a38.81bn).<\/p>\n

FTX has been able to monetise “an extraordinarily diverse collection of assets”, most of which were investments made by FTX or its investment company Alameda Research, it said.<\/p>\n

The vast majority of creditors – 98% – will get 118% of the amount due and receive it within 60 days of FTX’s proposed plan coming into effect.<\/p>\n

These are people or organisations owed $50,000 or less by FTX.<\/p>\n

The fall of FTX<\/strong><\/p>\n

Mr Bankman Fried was found to have lied to investors and to have stolen billions of customer funds to make political donations, bribe officials and fund his life in the Bahamas.<\/p>\n

He was in March sentenced to 25 years in jail<\/strong>.<\/p>\n

At the time of its collapse, FTX held only 0.1% of Bitcoin and only 1.2% of another cryptocurrency, Ethereum, that customers thought it held.<\/p>\n

As reports of the troubles at the firm brewed customers rushed to withdraw their crypto from the company. Many were then locked out of their accounts and unable to make withdrawals.<\/p>\n

Mr Bankman’s belief – effective altruism<\/strong><\/p>\n

A key belief for Mr Bankman Fried which he championed – and was the raison d’etre for founding FTX – was effective altruism.<\/p>\n

Proponents of effective altruism believe in earning as much money as possible and using evidence-based approaches to benefit humanity as much as possible with the cash.<\/p>\n

The \u00a314.9m UK manor home nicknamed Effective Altruism Castle is being sold, just two years after being bought by the Effective Ventures Foundation (EV), which had been supported by FTX.<\/p>\n

Wytham Abbey, outside Oxford, is currently up for sale at \u00a315m.<\/p>\n

“The proceeds of the sale, after the cost of sale is covered, will be allocated to high-impact charities,” said the chief executive of EV UK Rob Gledhill.<\/p>\n<\/p>\n

This post appeared first on sky.com<\/div>\n<\/div>\n

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