FTX caretakers looking to 'overpay' on customer losses

COLLAPSED cryptocurrency exchange FTX will have more money to return to out-of-pocket customers than first anticipated, says its current management.

The company's caretakers have reviewed and amended a rescue plan to something in the region of $14.5 billion to $16.3bn that could be made available.

FTX chiefs say the new figure has been reached through the potential of monetising assets in the form of investments made by FTX-controlled hedge fund Alameda Research. It also focuses on settlements with key stakeholders, many of which are awaiting legal approval.

If approved in court, the majority of creditors with claims below $50,000 will new receive 118% of the claimed figure.

"We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors," CEO John Ray said.

Once one of the world's biggest crypto platforms, the implosion of FTX on November 2022 sent violent shockwaves across the industry, with more than nine million customers losing access to their funds.

In March, its founder - 32-year-old Sam Bankman-Fried - was handed a sentence of 25 years behind bars after being found guilty of stealing $8 billion from the exchange's customers.

Last month, Bankman-Fried's lawyers said their client would appeal the sentence.

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