FTX Reawakens the Hope of Vietnamese Customers in New Email

The now-defunct FTX crypto exchange, which declared bankruptcy in November, appears to be taking steps to reassure its investors. This was discovered after several Vietnamese customers claimed to have received an email from FTX, asking them to clarify specifics for the refund of their monies.

According to reports, the FTX email includes information about customers’ account balances as of the day it filed for bankruptcy. While some Vietnamese FTX investors have confirmed that the amount listed in the email is correct, the company has stated that the email is only proof of confirmation and that a refund schedule will be implemented by the court.

Hoang Quan, a Da Nang-based crypto investor who initially thought the email was a scam said he felt safe after multiple users spoke about the email. Tu Quynh, the head of a sizable crypto community also gave statements of being optimistic even though it is unclear how the refund process will be scheduled.

The Vietnamese investors’ optimism to get refunds from the defunct trading platform may have been strengthened by the launch of a withdrawal website in Europe. Last week, FTX’s EU customers received approval from Cyprus regulators to access their funds through a newly launched website. This follows shortly after FTX Japan announced the resumption of users’ withdrawals.

Can FTX Assets Cover its Shortfall?

While the new management of FTX under John Ray has prioritized debt recovery, it is still not sure whether the company’s total recoverable assets can cover its debts.

According to court filings, FTX has approximately $4.8 billion in assets. On the other hand, it owes nearly $11.6 billion to its creditors. Without a doubt, FTX’s current assets don’t live up to their commitment. However, the exchange is on a rampage to recover debts to pay its clients. Notably, FTX is currently seeking to recoup its $460 million funds owed by Modulo Capital.

Additionally, federal prosecutors have seized approximately $700 million in assets from exchange’s former CEO, Sam Bankman-Fried. Subsequently, assets valued at over $6 million were confiscated from accounts at Silvergate Bank, and another $50 million was seized from a Moonstone Bank account by prosecutors.