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Fallen cryptocurrency exchange FTX has raked in billions of dollars more than it needs to fully pay back customers who lost funds in its November 2022 collapse.

In a rare twist versus typical US bankruptcy proceedings, FTX — whose downfall recently spurred a 25-year prison sentence for its former CEO, Sam Bankman-Fried — also has enough money to cover interest, according to Bloomberg.

Once it finishes selling all of its assets, FTX will have as much as $16.3 billion in cash to distribute versus about $6.4 billion earlier this year, the company said in a statement.

The firm owes more than 2 million customers and other non-governmental creditors about $11 billion.

In any bankruptcy, this is just an unbelievable result, said FTX CEOJohn Ray, who took over the firm when it collapsed.

Lower-ranking creditors traditionally receive just pennies on the dollar for their holdings in bankrupt companies, Bloomberg reported, but FTX has benefited from strong rallies in crypto tokens like Solana, which has been endorsed by Bankman-Fried.

Although FTX will pay its debts back in full, plus interest, there won’t be much left for equity holders, according to papers reviewed by Bloomberg that were filed Tuesday evening in federal court in Wilmington, Del., which is where the FTX case is being handled.

In bankruptcy, company owners cant collect anything until all debts have been paid in full.

In this case, US regulators and the Internal Revenue Service have claims that are big enough to likely wipe out shareholders, Bloomberg reported.

FTX’s top equity holders include venture capital firm Sequoia Capital, private equity company Thoma Bravo, Singapores Temasek Holdings and the Ontario Teachers Pension Plan, according to a court filing last year, per Bloomberg.

Celebrities including Tom Brady and his ex-wife Gisele Bundchen also hold common shares.

Creditors also have missed out on a massive surge in crypto prices this year because their claims are fixed to the date FTX filed its insolvency case in 2022 under US bankruptcy rules.

Since then, crypto prices have risen dramatically.

In reality am only getting 25% of my Bitcoin back, and that will be over many years, said UK-based Arush Sehgal, a member of the FTX unsecured creditors committee who had more than $4 million stuck on the exchange when it went under.

Still, the news is lately boosting the price of creditor claims, with some now trading at more than 100% of face value, sources told Bloomberg.

Many of those claims were trading for as little as 3 cents on the dollar immediately after the bankruptcy filing.

Bankman-Fried has vowed since his firm’s collapse that he wanted to pay victims back in full.

All we can do as a bankruptcy team is monetize the value and distribute it out, Ray said, per Bloomberg, noting that no other bankruptcy case has involved so many claimants. We cant create coins and tokens that arent there. And this is the next best alternative.

Ive never seen a case with 2 million customers, Ray added. Ive just never seen anything close to it.

The judge who prosecuted the case, US District Judge Lewis Kaplan, however, had said during sentencing: The defendants assertion that FTX customers and creditors will be paid in full is misleading. It is logically flawed, it is speculative.

Car rental giant Hertz and American Airlines are among the other major US corporations that have gone through a recent bankruptcy and been able to get creditors all their money back.

Bankman-Fried recommended Solana and the decentralized blockchain platform its traded on, which bears the same name, to the prison guards at Brooklyn’s Metropolitan Detention Center, ahead of the 25-year sentence he got for swiping FTX user funds to plug an $8 billion debt at sister company and failing hedge fund Alameda Research.

FTX has also sold dozens of its assets, including various venture capital projects like a stake in the artificial intelligence company Anthropic, in order to stockpile more cash and pay investors back in full, according to Bloomberg.

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UK

VE Day: Veterans to join King for tea party as Keir Starmer praises ‘selfless dedication’

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VE Day: Veterans to join King for tea party as Keir Starmer praises 'selfless dedication'

Veterans are set to join the King for a VE Day tea party today as the prime minister has paid tribute to the “selfless dedication” of the war generation.

Among them will be a 99-year-old who took part in the D-Day landings and a 100-year-old woman who worked in the Special Operations Executive, known as Churchill’s Secret Army.

Director general of the Royal British Legion, Mark Atkinson, said the charity was “proud” to be taking a place “at the heart of these national celebrations and commemorations” on the 80th anniversary of the end of the Second World War.

He said it would be “one of our last opportunities as a nation to pay tribute to those veterans still with us today”.

Evacuees from World War Two and veterans who were still in active conflict after VE Day are among the other guests set to attend the tea party, which will take place in the presence of the King and other members of the Royal Family.

The Royal Family will watch a millitary procession and flypast on Monday. File pic: PA
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The Royal Family will watch a military procession and flypast on Monday. File pic: PA

At 12pm, the Royal Family will observe a military procession, followed by a flypast.

It will be the first major VE Day anniversary without any of the royals who stood on the balcony of Buckingham Palace on the day victory in Europe was declared, after the death of the late Queen Elizabeth II in 2022.

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‘Not just for Britain’

The celebrations come as Prime Minister Sir Keir Starmer praised veterans for their “selfless dedication” and thanked them for a “debt that can never fully be repaid” in an open letter ahead of VE Day.

He said the stories which will be heard this week from those who fought in the Second World War would be a reminder that the victory “was not just for Britain” but was also “a victory for good against the assembled forces of hatred, tyranny and evil”.

Sir Keir said the WW2 veterans “represent the best of who we are” and that without their service “the freedom, peace and joy that these celebrations embody, would not be possible”.

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VE Day veteran tells Sky News what the atmosphere was like when WWII was finally declared over in Europe

Personnel from NATO allies the US, France and Germany will be among those taking part in the procession in London.

The commemorations will begin with the words of Sir Winston Churchill‘s 1945 victory speech, spoken by actor Timothy Spall.

Thousands of people are expected to line the streets of the capital to witness the celebrations.

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Codebreaker’s ‘special’ encounter with Churchill

Read more:
What’s happening to mark the 80th anniversary of VE Day?
When and where to watch VE Day flypast
Augmented reality brings to life the stories of VE Day 80 years on

On the anniversary itself on Thursday, marking exactly 80 years since the Allies formally accepted Germany’s surrender, a service of commemoration will be held at Westminster Abbey, to include a national two minutes’ silence.

Pubs across England and Wales, which usually close at 11pm, will also stay open for an extra two hours to allow punters more time to celebrate.

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Sports

Logano gets 1st win this season in OT at Texas

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Logano gets 1st win this season in OT at Texas

FORT WORTH, Texas — Reigning NASCAR Cup champion Joey Logano overcame a lot to get his first victory this season.

It came a week after Team Penske teammate Austin Cindric‘s win at Talladega, where Logano had a fifth-place finish that became 39th after a postrace inspection found an issue with the spoiler on his No. 22 Ford. There was also Logano’s expletive-laden rant on the radio toward his teammate in the middle of that race that the two smoothed out during the week. Oh, and he started 27th at Texas after a bad qualifying effort on the 1½-mile track.

But Logano surged ahead on the restart in overtime Sunday to win in the 11th race this year. He led only seven of the 271 laps, four more than scheduled.

“After what happened last week, to be able to rebound and come right back, it’s a total ’22’ way of doing things. So proud of the team,” Logano said.

On the final restart after the 12th caution, Logano was on the inside of his other teammate, Ryan Blaney. But Logano pulled away on the backstretch and stayed easily in front for the final 1½ laps, while Ross Chastain then passed Blaney to finish second ahead of him.

“Just slowly, methodically,” Logano said of his progression to the front. “Just kept grinding, a couple here and a couple there and eventually get a win here.”

Logano got his 37th career victory, getting the lead for the first time on Lap 264. He went low to complete a pass of Michael McDowell.

“I mean, there’s always a story next week, right?” Logano said. “So I told my wife last week before we left, I said, ‘Watch me go win this one.’ It’s just how we do stuff.”

On a caution with 47 laps left, McDowell took only two tires and moved up 15 spots to second. He ended up leading 19 laps, but got loose a few laps after getting passed by Logano and crashed to bring out the caution that sent the race to overtime. He finished 26th.

“We were giving it everything we had there to try to keep track position,” McDowell said. “Joey got a run there, and I tried to block it. I went as far as I think you could probably go. When Blaney slid in front of me, it just took the air off of it and I just lost the back of it. I still had the fight in me, but I probably should have conceded at that point.”

Odds and Ends

William Byron, Kyle Larson, Denny Hamlin and Chase Elliott remained the top four in season points. … Elliott left Texas last spring with his first victory after 42 races and 18 months without one. He hasn’t won since, and now has another long winless drought — this one 38 races and nearly 13 months after finishing 16th. … A crew member for Christopher Bell crawled in through the passenger side of the No. 20 Joe Gibbs Racing Toyota and was fully in the car to reconnect an air hose to the driver’s helmet during a caution in the second stage. It took two stops during that caution, and twice climbing into the car, to resolve the issue.

Fiery end to Hamlin streak

Hamlin had finished on the lead lap in 21 consecutive races, but a fiery finish on Lap 75 ended that streak that had matched the eighth longest in NASCAR history. He was the first car out of the race.

After the No. 11 Joe Gibbs Racing Toyota lost power, something blew up when Hamlin recycled the engine. Flames were coming from under the car and it was engulfed in smoke when it rolled to a stop on the inside of the track, and Hamlin climbed out unharmed.

Youngest pole sitter

Carson Hocevar, the 22-year-old driver who is McDowell’s teammate with Spire Motorsports, was the youngest pole sitter in Texas. He led only the first 22 laps of the race, losing it while pitting during the first caution. He finished 24th after a late accident.

Stage cautions

Both in-race stages finished under caution. Cindric won Stage 1 after Hamlin’s issues, and Kyle Larson took the second after a yellow flag came out because of debris on the track after the right rear tire on Chris Buescher‘s car came apart.

Larson got his 68th overall stage win and his sixth at Texas, with both marks being records. He has won a stage in each of the past five Cup races at Texas, starting in his 2021 win there.

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US

Trump calls for reopening of Alcatraz to house ‘most ruthless and violent offenders’

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Trump calls for reopening of Alcatraz to house 'most ruthless and violent offenders'

US President Donald Trump has called for the reopening of notorious prison Alcatraz.

In a post on his social media site Truth Social, Mr Trump said America had been “plagued by vicious, violent, and repeat criminal offenders”.

He added that when the United States was “a more serious nation” it “did not hesitate to lock up the most dangerous criminals”.

“That is why, today, I am directing the Bureau of Prisons, together with the Department of Justice, FBI, and Homeland Security, to reopen a substantially enlarged and rebuilt Alcatraz, to house America’s most ruthless and violent offenders,” he wrote.

Mr Trump said the reopening of the San Francisco prison would “serve as a symbol of law, order, and justice”.

The US president’s latest policy announcement comes after he fired national security adviser Mike Waltz last week in the first major change to his administration.

US President Donald Trump. Pic: AP
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US President Donald Trump speaking to reporters on Sunday. Pic: AP

Alcatraz was infamously inescapable and in the 29 years it was open, 36 men attempted 14 separate escapes, according to the FBI.

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Nearly all of them were caught or did not survive the attempt at escaping.

The prison housed some of America’s most notorious criminals, including Al Capone and George Kelly.

It has also been the subject of a number of films, including The Rock, starring Sean Connery and Nicolas Cage.

Alcatraz Island. File pic: AP
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Alcatraz Island. File pic: AP

Alcatraz Island, which is surrounded by strong ocean currents and cold Pacific waters, is now a major tourist site, operated by the National Park Service.

The prison’s closure in 1963 was attributed to crumbling infrastructure and high repair costs.

A spokesperson for the Bureau of Prisons said it would “comply with all presidential orders”.

The Bureau of Prisons currently has 16 high-security prisons, including its maximum-security facility in Florence, Colorado, and a facility in Terre Haute, Indiana, which is home to the federal death chamber.

The United States’ federal law enforcement agency has been the subject of increased scrutiny in recent years after Jeffrey Epstein‘s suicide at a federal jail in New York City in 2019.

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