FTX Clear to Repay Customers as Firms Seek Slice of $1 Billion

Cryptocurrency firm FTX won court approval to fully repay customers whose digital assets were locked on the platform when it imploded nearly two years ago, an unusual result that could net shareholders in Sam Bankman-Fried’s fraud-tainted exchange a slice of $1 billion in seized assets.

US Bankruptcy Judge John Dorsey said Monday he’d approve payments to FTX customers harmed by Bankman-Fried under a sweeping proposal formulated by advisers who took charge of the exchange after it collapsed. In November 2022, crypto prices were so low and FTX was in such chaos that advisers initially concluded creditors would recover only ...