FTX, one of the leading cryptocurrency exchanges, filed for bankruptcy protection in November 2020 following the emergence of serious allegations regarding misappropriation of user funds. Thousands of local users from Vietnam were left in the lurch after their fund were reportedly lost. Prior to filing for bankruptcy, the exchange was valued at $ 32 billion, a significant decrease from its previous value of $8 billion. With the filing of bankruptcy, the value of FTX's FTT (token) also plummeted, much to the surprise of the global crypto community.

After its filing for bankruptcy protection, news emerged of Binance attempting to acquire FTX but to no avail. Subsequently, FTX co-founder, Sam Bankman-Fried, was charged with various violations such as money laundering, fraud and campaign finance violations, in what has become one of the biggest scandals in the crypto industry in recent times.

In a bid to compensate the users affected by the scandal, FTX has sent out emails to the customers identified to have positive account balance when the exchange filed for bankruptcy. The notification informs the users that there is potential for them to have their funds fully or partially restored, depending on the decision of the court. The amount of restitution, however, is yet to be determined. Although FTX was not a major player in Vietnam, it still left many of its customers reeling under the losses incurred.

Overall, it is yet to be seen what the court's decision would be in regards to FTX's bankruptcy filing and the subsequent return of funds to customers. As of now, it remains one of the most prominent cases that has made the whole crypto community take notice of the chaotic events that followed.



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