According to allegations, FTX has been selling cryptocurrency and hoarding monies in order to reimburse its customers.
The cryptocurrency exchange collapsed in November 2022, and these clients’ accounts were locked. According to a Bloomberg News report published Saturday (Jan. 27) that cites court records, FTX’s top affiliates had $4.4 billion in cash at the end of last year.
According to the publication, FTX’s cash is expanding as the value of its customer accounts increases. Client claims worth up to $1 million were selling at around 73 cents per dollar at the end of last week, compared to 38 cents per dollar in October.
Bloomberg reported that FTX has declared that it does not expect consumers to be fully repaid. Several of these customers have opposed to the company’s idea that their cryptocurrency be valued at what it was at the time of bankruptcy. That value has skyrocketed since 2022, thanks to the current bitcoin surge.
“The bitcoin and ethereum I held on FTX prior to the collapse were purchased nearly a decade ago,” customer Robert Shearer said in a recent court declaration criticizing the scam. “Simply put, I had no intention to sell at the market bottom price.”
