FTX debtors scrap reboot plans

Lawyers representing FTX in its bankruptcy told a court Wednesday that the former exchange will repay customers in full

article-image

Kiran Jyothi VP/Shutterstock and Adobe modified by Blockworks

share

Lawyers representing FTX in its bankruptcy told a court Wednesday that the former exchange will repay customers in full.

Andrew Dietderich, a lawyer, said that customers and unsecured creditors who can prove their losses “will eventually be paid in full.” Restructuring advisers will assess the claims to separate the legitimate from the illegitimate ones.

“I’d like the court and stakeholders to understand this is not a guarantee,” but an objective, he added. “There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach and we have a strategy to achieve it.”

The company, which filed for bankruptcy in November 2022, previously suggested that it would reimburse customers in USD for the amounts that their holdings were worth at the time FTX filed for bankruptcy. 

Read more: Bankman-Fried’s crypto portfolio would be up billions this year — thanks to Solana

This means that those who held ether at around $1,200 at the time of filing would be reimbursed at that price point. Ether (ETH) now trades around $2,300. 

Bankruptcy law, FTX argued, means that values offered should be based on the date of bankruptcy despite the gains across crypto since the collapse. Former customers, however, pushed back against the suggested reimbursement values.

“The code is very clear,” Judge John Dorsey said at the hearing. He said that while there are exceptions to the bankruptcy code, the FTX case and the objections do not meet the criteria.

Read more: After 13 months of bankruptcy, FTX files its reorganization plan to end it

As for rebooting FTX, Dietderich said that “no investor is ready to commit the needed capital to a restart of the offshore exchange. Nor has a buyer emerged for that exchange.”

Over 75 bidders were contacted about a possible reboot back in September.

However, the FTX estate still has “valuable customer data and information to monetize.”

“Our current Chapter 11 plan doesn’t include the expectation of any recoveries from a restart of FTX.com,” he added.

The FTX estate has been selling off its crypto holdings, including nearly a billion dollars worth of Grayscale’s bitcoin ETF, according to reports.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy