FTX Becomes Major Bitcoin Shorter Amid Efforts to Recover Customer Funds
FTX struggles to repay debts, raises $4.4 billion by selling assets and trading Bitcoin derivatives, but full customer repayment remains uncertain.
The collapsed crypto exchange FTX is making efforts to repay customers after its major downfall. To accumulate money for this, FTX is selling its crypto assets.
In 2022, FTX's fall led to a severe drop in the crypto market and billions in debts to its customers. Ever since then, FTX has been seeking ways to pay them back. In August 2023, they proposed a plan to settle debts in cash and restart the platform for international users as FTX(.)com.
According to Bloomberg, FTX has accumulated $4.4 billion by December 2023, up from the initial $2.3 billion in October. In December, it was reported by Coinpaprika that the platform made $1.8 billion by selling assets. Also, FTX has been trading Bitcoin derivatives to manage risks and increase profits from their crypto holdings.
Zerohedge commented on FTX's Bitcoin trades, noting the fact that FTX is a big futures shorter of Bitcoin (trading/betting against the price of Bitcoin), they mentioned that if Bitcoin sees a big price increase FTX could face more financial issues. FTX admits that they might not fully repay customers, and FTX(.)com users could face bigger losses.
