Cryptocurrency exchange FTX has abandoned plans to relaunch and committed to fully repaying its customers and creditors during bankruptcy proceedings.
The decision to discontinue relaunch efforts was made due to the high costs involved.
The company has been actively working to locate assets and untangle debts, with its cash reserves nearly doubling by the end of 2023.
“I would like the court and stakeholders to understand this not as a guarantee, but as an objective. 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’s attorney Andrew Dietderich wrote.
The court also sought approval for a process to determine the owed amounts to each creditor and customer, with the size of each claim based on the amount owed on the day FTX filed for bankruptcy.
