FTX says most customers of the bankrupt crypto exchange will get their money back.
Transcript:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are coming off a mixed session Tuesday with the Dow clinching its longest winning streak since December. Uber shares are reacting to its disappointing first quarter results. The company beat revenue estimates, but posted an unexpected net loss.
Investors are looking ahead to earnings from Airbnb, Instacart, AMC and Bumble, all slated to report after the closing bell. So far 85 percent of S&P 500 companies have reported earnings and of those, roughly 80 percent have surpassed Wall Street estimates.
Switching to crypto – customers who held money in failed cryptocurrency exchange FTX received a bit of good news. According to a new court filing, nearly everyone who held money with the collapsed firm will get that money back.
Under its new reorganization plan, FTX estimates that it owes creditors $11.2 billion – and that it currently has up to $16.3 billion to distribute back to them. Customers that are owed $50,000 or less will receive 118 percent of their allowed claim, and FTX says roughly 98 percent of creditors will receive this type of compensation. The plan, which still needs to be approved by the bankruptcy court, will allow users to access their funds for the first time since November 2022.
FTX was one of the largest digital currency exchange platforms and, at its peak, was worth more than $30 billion. But the crypto empire crumbled quickly, with former CEO Sam Bankman-Fried using customer funds for personal purchases, as well as covering up bad business decisions. In March, Bankman-Fried was sentenced to 25 years in prison and ordered to forfeit more than $11 billion.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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