FTX clients fear they will never see their money again

FTX clients fear they will never see their money again

Clients of the cryptocurrency exchange FTX, which had initiated bankruptcy proceedings, began to lose hope that one day they would get back their money left on the platform, writes Wall Street Journal newspaper. In early November, the company blocked the withdrawal of funds from its international division accounts due to financial problems. Investors in American subsidiary FTX US hoped they would have time to get their money, but many didn’t.

    Credit: REUTERS/Marco Bello

Credit: REUTERS/Marco Bello

On November 10th, FTX Founder Sam Bankman-Fried tweeted that FTX US, “did not suffer financially from this farce” and “100% liquid”. One of the exchange’s clients, Mr. Way, decided to withdraw his funds and in response received an automated email informing him that his request would be processed within 1 business day. The next morning, FTX filed for bankruptcy and Mr. Bankman-Fried resigned.

As of Sunday, November 20th, the FTX US website still has the November 10th post: “Payouts are available and will continue to be available”and Mr. Way is still waiting for his money. He blames his troubles not only on the crypto exchange, but also on celebrities who helped promote it and promised new clients huge profits from investing in cryptocurrency.

How many digital assets FTX has left and where they may be is unclear as the crypto exchange did not keep proper bookkeeping and did not have an accurate list of bank accounts. That’s what new FTX CEO John J. Ray III said in court last week “just a part” FTX digital assets have been discovered and are under control.

Meanwhile, Bankman-Fried continues to insist that FTX’s US clients should be fine. “To the best of my knowledge, FTX US has facilities to process withdrawals to clients, he wrote on Friday. — However, the bankruptcy implementation team does not appear ready to withdraw them.”

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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