The bankrupt cryptocurrency exchange FTX has announced its intention to fully repay its former customers, despite deciding against reviving the exchange. FTX's attorney, Andrew Dietderich, conveyed to a judge that the exchange anticipates having adequate funds to settle all valid claims from customers and creditors during a hearing on Wednesday.

Under the leadership of its former CEO, Sam Bankman-Fried, FTX filed for bankruptcy in late 2022 and was later found guilty of defrauding its customers, lenders, and investors.

Dietderich further clarified that there are no plans to reactivate the FTX platform. He mentioned that assets acquired by FTX, which were worth hundreds of millions of dollars, are now seen as having minimal value, with little interest from potential buyers.

Despite possessing valuable customer data that could be monetized, efforts to attract investors for restarting the offshore exchange have been unsuccessful, according to Dietderich. FTX CEO John J. Ray III had previously indicated the company's interest in rebooting the FTX.com exchange, which would have likely involved a rebranding.

The update was well-received by the lawyer representing the official committee of unsecured creditors, marking it as a significant moment for the debtors. A disclosure statement scheduled for February will detail the plan for fully compensating customers' claims, albeit with some conditions.

The full repayment is calculated based on the values at the time of the bankruptcy filing, which may not reflect the initial value of the claims due to significant declines in currency values prior to the filing. The committee acknowledges the necessity of using the filing date for these calculations.

Furthermore, the judge approved a debtor's motion to convert digital asset claims into U.S. dollars, deeming the proposed estimation method as fair and reasonable. This decision supports the process of settling claims in a manner that aligns with the exchange's available assets and the legal framework governing bankruptcy proceedings.

The Block