On November 11, 2022, FTX and Alameda Research filed for Chapter 11 bankruptcy protection in the United States after clients withdrew nearly $6 billion in 72 hours and Binance abandoned its proposed acquisition of FTX.com. FTX’s funding needs were then estimated at up to $8 billion, while Alameda Research was heavily exposed to FTT, the token issued by FTX. Four years later, creditors began receiving staggered distributions in February 2025, calculated according to the dollar value of their claims when the bankruptcy filing was made. Sam Bankman-Fried was convicted on seven counts in November 2023 and sentenced to 25 years in prison in March 2024. Some creditors can therefore recover more than 100% of their claims in dollars while receiving less than the current value of the cryptocurrencies they had deposited on the platform.
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