FTX is guaranteed to distribute rightful compensations to around 98% of the defrauded customers as the crypto hedge fund fiasco comes to a close.
In a court filing on Tuesday, FTX declared that all creditors with $50,000 or fewer assets will receive 118% of their original investments from the allotted $14.5 to $16.3 billion compensation budget.
(Photo : Leon Neal/Getty Images)
A huge part of the compensation came from the collected venture stakes convicted FTX ex-CEO Sam Bankman-Fried placed before the company's fall, many of which have grown into a hundred million dollars worth of shares.
One stake was in the AI startup Anthropic which has boomed up to $884 million following the rise of the AI technology.
As of writing, the proposed compensation package awaits court approval before being distributed to affected creditors. It remains uncertain when the stolen money can be returned.
Associated Press first reported on the FTX court filings.
Also Read: FTX Customers May Receive Full Refunds Soon
Scammed FTX Customers Will Not Receive '100%' Compensations
Despite FTX's claims of a "100%" plus interest return to creditors, affected customers do not stand to fully recover from their losses.
According to Axios, bitcoin was valued at around $18,562 when FTX collapsed in November 2022. Since then, the cryptocurrency has grown to $61,923 in today's exchange rates. The current FTX leadership is only willing to offer $21,903 per bitcoin lost.
This means that affected customers are still at a loss of at least two-thirds of the supposed bitcoin value growth they originally invested in the company.
FTX Ringleader Sam Bankman-Fried to Serve 25 Years in Prison
On a more positive note, scammed customers can have the cold satisfaction that the ringleader behind one of the biggest crypto schemes will be in prison for quite some time.
A US federal court convicted Bankman-Fried for seven counts of conspiracy and fraud after being found guilty of stealing $8 billion from customers.
Later in March, the 32-year-old was sentenced to serve 25 years at the Metropolitan Detention Center in Brooklyn, a big drop from the initial 100-year prison sentence proposed.
Bankman-Fried was replaced by former Enron chief John Ray III, a well-known litigator for recovering funds from collapsed corporations for over 40 years.
Related Article: Ex-FTX CEO Sam Bankman-Fried Asks to Reduce Prison Sentencing Over Fraud Charges
