The Japanese subsidiary of Sam Bankman-Fried’s failed crypto empire FTX has put together a draft plan for clients to withdraw funds, in what would be one of the rare cases of investors getting money back from the collapsed exchange.
The proposal, which has yet to be finalized, centers on using a platform called Liquid to facilitate the return of assets starting in January, according to people familiar with the matter.
Bankman-Fried’s sprawling tangle of FTX group companies slid into a chaotic bankruptcy on Nov. 11, potentially bilking more than a million creditors around the world and fomenting turmoil in the crypto sector. The fallen crypto exchange owes its 50 biggest unsecured creditors a total of $3.1 billion, according to court filings.