FTX Halts Plans To Revive Exchange and Focuses on Customer Repayment Efforts

FTX, a bankrupt cryptocurrency exchange, has informed the presiding judge in its insolvency case that customers and creditors who successfully validate their claims might fully recover their losses. 

During a court session in Wilmington, Delaware, on January 31st, attorney Andrew Dietderich stated that the firm's restructuring consultants must review the millions of claims against FTX to identify and remove any fraudulent ones.

Dietderich emphasized to the court and involved parties that this should not be seen as a promise but as a goal. 

He acknowledged the significant effort and risks involved in achieving this outcome but expressed confidence in their strategy to attain it. 

FTX declared bankruptcy in 2022 when its founder, Sam Bankman-Fried, ceased operations and transferred authority to legal and insolvency professionals. 

Since then, the firm's restructuring team has been locating assets and resolving the intricate financial obligations to various creditors, including clients who invested money and cryptocurrency in the trading platform.