FTX has now officially joined the ranks of dramatic financial bankruptcies — including Lehman Brothers and MF Global — in which customers actually get paid back in full. Why it matters: Such outcomes are more common than you might think, largely because financial bankruptcies are a unique animal where the ultimate losses borne by creditors are rarely a good guide to the magnitude of the damage caused. How it works: Financial companies tend to have large balance sheets, filled with assets that can often be hard to value or sell....

FTX says it will return money to most of its customers FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors. The exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them. The filing said that after paying claims in full, the plan provides for supplemental interest...

Nearly all of FTX’s former customers will get back almost 100% of the money they lost at the time of the cryptocurrency exchange’s collapse — if not more. FTX said in a statement Tuesday that it expects 98% of its creditors to receive approximately 118% of the amount of their allowed claims. Others will receive 100% of their claims plus billions in interest as compensation for the time value of their investments. The company forecasts that the total value of the assets, converted to cash and made available for distribution,...