The latest developments to FTX's quest to clear its name and start over anew are repaying its customers the money it owes after the fall of one of crypto's massive titans. This is the goal of the company now, but in its recent statement, it cannot promise that it will be able to do so, with the company pledging to make this its objective and return it to the rightful owners.
Moreover, the company said it has a strategy to achieve this refund to customers and investors, saying it is "within reach."
FTX Wants to Repay Customers But No Promises
According to the recent court hearing of FTX (via Bloomberg), the company plans to repay its customers and stakeholders what they owe them after the company went under almost two years ago. However, there is a caveat, and this is not a sure deal from the company to those with stakes here, as its lawyer Andrew Dietderich clarified in his statement.
On behalf of the company, Dietderich said, "I would like the court and stakeholders to understand this not as a guarantee but as an objective."
Moreover, there are considerations to returning the said funds to their rightful owners as regarded by the attorney.
"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."
FTX Has a Strategy to Repay Its Customers
FTX did not reveal the strategy explicitly on how to repay the customers, but there is one, and it said that it is "within reach."
Dietderich also "put to bed" the possibility of reopening or relaunching the defunct crypto-exchange platform, saying that the cost is too high after what its former CEO, Sam Bankman-Fried, left it in that state. The Chapter 11 of FTX puts an end to what SBF did and any future operations of the company.
FTX Bankruptcy and Sam Bankman-Fried
After cutting ties with Sam Bankman-Fried and the massive trial that took place, FTX revealed that it has plans to bring back the service in a possible revamp of the company. FTX 2.0 revealed its assets in its latest filing last September 2023, saying that they have as much as $3.4 billion in Solana, Bitcoin, Ethereum, and more for it to liquidate its portfolio.
However, the company is the only one moving forward with the potential revamp of FTX, especially as its executives were already disgraced when they first pleaded guilty to the charges against them. On the other hand, Sam Bankman-Fried's case was also handed the guilty verdict after the monumental criminal trial against him, to which he was also declared guilty.
One of the first steps in relaunching a bankrupted company is to remove its negative marks on different sheets, especially regarding finance and what it owes customers and investors. For now, there is a plan and strategy to repay those who have stakes in the company, but there are no guarantees made by the company looking into the possibility of returning their funds.
