Collapsed cryptocurrency exchange FTX has announced that it holds billions of dollars more than needed to fully compensate its clients.

After liquidating its remaining assets, FTX estimates it will have up to £16.3 billion available, significantly surpassing its declared debts of approximately $11 billion.

Under the new restructuring plan, the exchange asserts that almost all affected clients from its November 2022 collapse will receive full restitution, including accrued interest for non-governmental creditors.

This optimistic outlook comes after FTX’s turbulent history, which saw its co-founder Sam Bankman-Fried sentenced to 25 years in March for defrauding clients and investors.

FTX’s Assets Exceed Debts, Ensuring Full Compensation for Clients

FTX’s new CEO, John Ray, expressed confidence in the Chapter 11 bankruptcy proposal, which still awaits approval from a US bankruptcy court. The company has been actively raising funds by divesting assets from Alameda Research and FTX Ventures, both formerly owned by Bankman-Fried.

Despite a significant rise in cryptocurrency prices since FTX’s bankruptcy declaration, the exchange noted that this increase had not substantially improved its financial standing, largely due to the near-total loss of Bitcoin and other digital currencies at the time of its collapse.

Prior to its downfall, FTX was among the world’s leading cryptocurrency platforms, attracting millions of users globally.

The platform’s rapid collapse followed client withdrawals totaling billions of dollars, spurred by rumors of financial instability, revealing the extent of mismanagement under Bankman-Fried’s leadership.