Bankrupt cryptocurrency exchange FTX has successfully raised billions to fully repay its 2 million customers, a significant development in its bankruptcy proceedings.

FTX, which declared bankruptcy in late 2022, has exceeded the necessary funds to cover the losses incurred during its collapse. FTX CEO John Ray described this achievement as an “unbelievable result,” indicating the exchange’s commitment to reimbursing all its customers.

With the impending sale of its assets, FTX is poised to have around $16.3 billion in cash, surpassing its $11 billion debt to customers and other creditors. While customers affected by the bankruptcy will be repaid in full with interest, equity holders are unlikely to receive any remaining funds, as per court documents.

Depending on the type of claim, some creditors could potentially recover up to 142% of the amounts owed, with most customers expected to receive 118% of their account balances at the time of FTX’s bankruptcy filing.

Former FTX executive Ryan Salame has forfeited a $5.9 million mansion in the Bahamas.

FTX’s advisors have suggested creating a fund to compensate specific creditors, utilizing funds originally intended for regulatory purposes. While the timeline for this fund remains uncertain, payouts are anticipated in the coming months. Following this news, FTX Token (FTT) saw a 33% surge, reaching $2, according to CoinMarketCap data.

FTX collapsed in November 2022 amidst allegations of embezzlement and misappropriation of customer funds involving its owners and affiliated hedge fund Alameda Research. The founder, Sam Bankman-Fried, was sentenced to 25 years in prison and ordered to repay $11 billion.

Pantera Capital has won another bid for discounted Solana tokens in the FTX bankruptcy auction.

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