FTX Creditors Likely To Be Paid up to 140% the Value of Their Original Claims: Report

FTX’s bankruptcy estate is primed to pay its creditors more than the value of their original claims, according to the Financial Times.

Citing two people “with knowledge of the restructuring negotiations,” FT reports that the imploded crypto exchange will likely pay its former customers 120-140% of the value of their holdings on the day FTX filed for bankruptcy in November 2022.

The increased payouts are thanks to soaring crypto prices and FTX’s 8% stake in the AI (artificial intelligence) safety and research company Anthropic. The bankrupt exchange’s administrators reportedly plan to sell two-thirds of that Anthropic stake to a group of investors for $884 million.

The size of creditor repayments hinges on whether the U.S. Internal Revenue Service (IRS) maintains its demand for $24 billion in unpaid taxes.

FTX’s legal team has also reportedly argued that the bankrupt crypto exchange owes no taxes to the IRS since it repeatedly recorded losses over its three-year lifespan.

Disgraced FTX founder Sam Bankman-Fried was found guilty late last year of defrauding investors and mishandling billions of dollars worth of customer funds related to the multi-billion-dollar downfall of the exchange in 2022.

Sponsored

Prosecutors have recommended a prison sentence of 40-50 years for Bankman-Fried, although the former CEO’s lawyers have reportedly argued that he should serve a maximum of 6.5 years, pointing to the size of creditor repayments.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Tumblr

Surf BitcoinLinux Mix

View Latest Crypto News

BTCnix Home
&nbsp

Get Alerts 728x90 143
Disclaimer: Opinions expressed at BitcoinLinux are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. BitcoinLinux does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is BitcoinLinux an investment advisor. Please note that BitcoinLinux participates in affiliate marketing.

Generated Image: Midjourney

The post FTX Creditors Likely To Be Paid up to 140% the Value of Their Original Claims: Report appeared first on BitcoinLinux.