FTX could be on a path of course correction. Per the recent update, the company is expected to make refunds in full to eligible customers. Meanwhile, Sam Bankman-Fried is about to spend most of his life in prison. His hearing in Brooklyn is scheduled to happen on March 28, 2024. Representatives of FTX remain optimistic and cautious, saying that some repayments are complex.
Hopes to repay customers are rooted in the fact that the crypto market has rebounded from the winter, and the company’s investments are bearing fruitful results.
For instance, BTC was down to $16,000, but it is now exchanging hands at $48,116.19. Sam Bankman-Fried will be sentenced based on seven criminal counts. He has been found guilty of committing a misuse of funds for his lavish lifestyle. Reports also claim that most of the money went into other investments, which have now appreciated tremendously.
Andrew Dietderich is working with the new leadership team at FTX. They have confirmed that while it is possible to repay customers in full, the process is still filled with risks ahead, adding that the team has a strategy to achieve the goal of repayment. Not a lot has been said about their strategy, as their confidence remains unhampered.
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Many FTX customers have welcomed the move. Sam confirmed in January 2023 that the company is fully solvent and could return the funds to the customers.
John Ray III, the new Chief Executive Officer of FTX, has said that they have tracked down missing assets from the books. They are valued roughly at $7 billion, excluding valuables worth $26 million in property and gifts. Investments by Bankman-Fried were also directed at companies like SpaceX.
One startup that is more under the radar is Anthropic. FTX had invested $500 million in 2021. The stake is now worth $1.4 billion, an increase amid the current demand for AI. FTX owns 8% of the company’s shares, according to its stake.
As for crypto investments, the value was $3.4 billion in September last year, out of which Solana alone held $1.1 billion. Solana has seen jumps in its trading value since September 2024. The token was last seen exchanging hands at $105.22. While it is a slip of 3.62% in the last 24 hours, it represents a jump of 9.40% in the last 7 days and a surge of 5.79% in the last 30 days.
Bitcoin Stash of FTX was at $560 million in September. They have now jumped to over $1 billion.
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Many experts believe returning money to customers will likely help Sam Bankman-Fried with his appeal. That would not be massive assistance, but judges may consider going easy with their judgment. Nevertheless, Bankman-Fried is still prone to a huge setback from the court as far as his sentence for criminal offenses is concerned.
