FTX Plans to Repay Customers in Full and The Exchange will not Re-start

Reported by The Block, bankrupt cryptocurrency exchange FTX said it plans to repay former customers in full even though it has abandoned plans to restart the exchange.

"We currently anticipate that we will have sufficient funds to pay all allowed customer and creditor claims in full," FTX lawyer Andrew Dietderich told a judge on Wednesday during a hearing.

Dietderich also said FTX does not plan to re-start the platform.

"A related disappointment is FTX 2.0. We still have valuable customer data and information to monetize," Dietderich said. "But after an exhaustive effort, no investor is ready to commit the needed capital to a restart of the offshore exchange."

“That payment in full is based on the petition date values of those claims. Many of those claims are premised upon currencies, which declined dramatically in value in that tumultuous period leading up to the petition date,” the lawyer said.

Many customers and creditors “won’t feel like that’s true payment in full from where they started,” the lawyer added.

“But we recognize that the petition date is the date that needs to be used,” the lawyer continued.

Later in the hearing, the judge approved a motion from the debtors that would convert claims in digital assets to U.S. dollars.