Creditors of bankrupt FTX could get up to 40% of their funds back

U.S. bank Jefferies is projecting a recovery rate of between 20 and 40 percent for creditors of bankrupt crypto exchange FTX.

Indeed, since the FTX crypto exchange declared itself bankrupt, customers, as well as various other creditors of the crypto trading platform, are now wondering if they will ever see their money back or at least a portion of it.

Interviewed by US media outlet The Block, Joseph Femenia, representing New York-based investment bank Jefferies Financial Group, estimates that FTX’s creditors could get up to 40% of their funds back.

Specifically, the global head of distressed and special situations at Jefferies bank suggests a recovery rate of between 20% and 40%. The American bank has set up a team of 5 people working on the FTX case with the aim of recovering the funds of some of the bankrupt company’s clients.

FTX owes more than $3 billion to its 50 largest creditors. In total, the group founded by Sam Bankman Fried would have more than a million.

Arrested in the Bahamas earlier this week on U.S. orders and facing eight counts, the former crypto magnate could face a very heavy sentence if convicted.