Cryptocurrency prices have been on a wild tear this year. But thousands of FTX customers, whose tokens have been trapped on the exchange for more than a year, are missing out on the action, WSJ Pro Bankruptcy reported. That is because the new managers running FTX plan to sell all of their bitcoin and other cryptocurrency and return a sum of cash to customers, according to a draft plan FTX is expected to propose to a bankruptcy judge later this month. While the run-up in crypto prices means FTX could have more money to distribute, some FTX customers are realizing they may never recover any of their increasingly valuable tokens. The exchange says it is easier to repay customers in cash because of the difficulty in untangling the company’s poor record-keeping and figuring out who has title to the exchange’s tens of millions of leftover tokens. U.S. bankruptcy law also says unpaid creditors can only demand to be repaid in dollars, no matter if they are owed euros, yen, or bitcoin. The expected proposal is a shock, many FTX customers say, as many of them believed they would eventually recover some of their frozen savings. Read more.
