What happens if FTX goes bankrupt?

Under a plan filed in federal bankruptcy court in Delaware, virtually all FTX’s creditors, including hundreds of thousands of ordinary investors who used the exchange to buy and sell cryptocurrencies, would receive cash payments equivalent to 118 percent of the assets they had stored on FTX, the lawyers said.

Are former customers reunited with lost bitcoin?

Former customers of bankrupt crypto exchange Mt. Gox are preparing to be reunited with their lost bitcoin—and it's a $9bn windfall. In late February 2014, Daniel was at his computer trading bitcoin on Tokyo-based crypto exchange Mt. Gox. Suddenly, the website flashed white and became unresponsive.

Why did FTX file for bankruptcy?

The filing also clouds the fate of BlockFi, a crypto lender that FTX helped bail out with $400 million earlier this year. The bankruptcy filing includes FTX's U.S. operations and its trading subsidiary, Alameda Research, which is now the target of a federal investigation.