FTX exchange to liquidate assets and repay customers after failed relaunch

Once-giant crypto exchange FTX has abandoned efforts to restart operations after being unable to secure enough financing, instead opting to liquidate all assets and return funds to customers, company attorney Andy Dietderich said Wednesday.

He called FTX “an irresponsible sham created by a convicted felon,” referring to founder Sam Bankman-Fried.

FTX had been negotiating with potential investors for months but none were willing to put in enough money to rebuild, Dietderich said.

The company will now focus on repaying customers whose funds were frozen when FTX filed for bankruptcy last November.

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FTX has recovered over $7 billion to distribute to customers and reached deals with regulators to wait on $9 billion in claims until clients are made whole.

While FTX expects to fully repay customers, it will use cryptocurrency prices from November 2022, sparking complaints. But U.S. Bankruptcy Judge John Dorsey upheld the use of 2022 prices, saying bankruptcy law requires debts be valued when filed.