Despite the positive outlook, there is still a significant amount of work and risk involved in returning the money to clients. The news is a welcome development for the many customers who lost billions in FTX's collapse, especially given the unsecured nature of the crypto industry. The situation could also impact the length of Bankman-Fried's prison sentence, which will be determined next month. Meanwhile, a secondary market has emerged where investors are selling their FTX debt, with claims going for more than 70 cents on the dollar as of December.
Key takeaways:
- Former FTX customers may be able to recoup their lost funds after the company's founder, Bankman-Fried, was found guilty of seven criminal counts related to the disappearance of roughly $10 billion in customer funds.
- Despite the company's bankruptcy, lawyers representing the bankruptcy estate of FTX believe they can fully repay customers and creditors with legitimate claims, due to the appreciation in value of some investments made with the missing funds.
- FTX's bitcoin stash, which was worth $560 million at the time of the company's collapse, is now valued at over $1 billion. Additionally, FTX's investment in AI company Anthropic is now worth about $1.4 billion.
- A secondary market, known as the "FTX IOU" market, has emerged where investors are selling their debt. The value of these claims has risen from 6 cents on the dollar to more than 70 cents on the dollar.