News - FTX compensates creditors with more than $800 million

By Luc Vesters

FTX compensates creditors with more than $800 million

Laws and regulations

Creditors of insolvent crypto exchange FTX can hope for further compensation. A bankruptcy court has ordered FTX Trading Ltd. to approve the sale of shares in the Grayscale Bitcoin Trust. In October, the value of the trust was $744 million, according to court documents. The current value is $873 million. The sale would have to take place in several parts so as not to affect the market.

"The debtors trade and sell the Trust's assets solely through an investment adviser pursuant to and in accordance with a court-approved investment services agreement," according to the court document. Therefore, the sales take place "over-the-counter (OTC) or on exchanges."

FTX filed for bankruptcy last year after the crypto exchange was unable to settle outstanding debts. Former boss Sam Bankman-Fried is now guilty found to various charges. The sentence is prediction to be announced next year. The total amount of misappropriated funds is said to be around $8.7 billion. Bankruptcy administrators have already collected US$7 billion, of which US$3.4 billion is in cryptocurrencies.

According to the bankruptcy administrator, former customers should recover up to 90 percent of their assets. Meanwhile, US regulators continue to keep an eye on the crypto market. After FTX and Binance, which bought itself out with a US$4.3 billion buyout, crypto exchange Bybit now appears to be in the crosshairs.

The Commodity Futures Trading Commission recently sent Bybit a subpoena. The suspicion: The exchange may be operating illegally in the US. The authority could prepare a lawsuit against Bybit.

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