FTX customers are still grappling with crypto platform's collapse

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FTX customers are still grappling with crypto platform's collapse
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For Lee Rees, 43, FTX was one of a handful of exchanges on which the London-based cryptocurrency trader earned a good living, profiting off fleeting price differences across the crypto market. When FTX collapsed last year, it took $100,000 of Rees' money, around half his annual income, with it. Rees is one of more than an estimated 1 million customers potentially facing losses after FTX, one of the largest crypto exchanges at the time, suddenly collapsed and filed for bankruptcy in November.

LONDON - For Lee Rees, 43, FTX was one of a handful of exchanges on which the London-based cryptocurrency trader earned a good living, profiting off fleeting price differences across the crypto market.

FTX founder and former-CEO Sam Bankman-Fried is accused of embezzling $10 billion from unsuspecting customers to prop up his hedge fund Alameda Research, buy luxury properties and fund political donations. His trial began in New York this week. John Ray, a specialist hired to handle the bankruptcy, has described failures of financial record-keeping within FTX, and customer funds being used to buy homes and other personal items for FTX staff. This makes the bankruptcy process complicated.

"I think there is a risk that there will be many victims who will find themselves victims again because of this procedure,” said Maxime, a 32-year-old Belgian, who has also found the bankruptcy claims process difficult. Sunil Kavuri, a financier who said he lost “seven-figures” on FTX, decided to start posting information about the bankruptcy on social media platform X, formerly known as Twitter, to combat misinformation.

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