FTX Customers Will Get Back Billions After Judge OKs Bankruptcy Plan
WiredOCT 2 2024
FTX Bankruptcy Approved, Customers to Receive Refunds
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The Spin
Narrative A
In a perfect world, customers would receive compensation with full interest, but this settlement is better than nothing. By putting a good chunk of the stolen money into valuable assets, Bankman-Fried made sure FTX could make some amends by selling those holdings and paying back most of its victims at 9% interest.
Narrative B
While something is better than nothing, and bankruptcies usually result in zero compensation, it's inaccurate to claim customers are being 100% compensated. If FTX didn't outright steal people's property and use it to fund Bankman-Fried's lavish lifestyle, many of these victims would be enjoying incredible profits right now.