• May 21, 2024

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FTX Creditors Might Only Be Able to Recover 40% of Funds

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According to investment bank Jefferies Financial Group, creditors of the collapsed crypto exchange FTX will only be able to recover about 40% of their funds.

The company’s director of problems and special situations, Joe Femenia, has added that this share will be even lower after paying administrative and legal fees in the process of bankruptcy of the exchange.

According to him, FTX’s total liabilities amount to about $10-13 billion, and assets are valued at $2-4 billion, which gives an approximate possibility of recovering 20-40% of the funds blocked in the company. The numbers are subject to change as new information about the balances of the exchange becomes available.

Jefferies expects costs for lawyers, restructuring specialists and other related items to range from $500 million to $1 billion, which means a reduction in return to 10-35%.