After the bankruptcy plan, FTX received a judge’s approval to pay investors in full
FTX distributes to creditors in more than 200 states to pay 119% of the value of their claims to 98% of its consumers FTX collapsed in November 2022 after allegations of fraud and mismanagement of customer funds
A US judge has approved FTX's bankruptcy plan to return billions of dollars in recovered assets to users, two years after the crypto exchange collapsed.
On Monday, Judge John Dorsey of the US Bankruptcy Court for the District of Delaware approved FTX's plan. By doing so, the exchange's creditors will be able to pay 98% of users, up from 119% of their claims, beginning in November 2022 when the company filed for bankruptcy.
FTX plans to pay between $14.7 billion and $16.5 billion after the total value of the assets is collected and converted to cash.
“The court's approval of our plan is a significant milestone on our path to distributing cash to customers and creditors,” John J. Ray III, FTX's chief executive officer and chief restructuring officer, said in a statement.
“The property is working to finalize arrangements for distribution to lenders in more than 200 jurisdictions around the world.”
Before its collapse, FTX was a well-known and trusted platform in the crypto space. However, in November 2022, the exchange collapsed due to lack of funding and mismanagement, which eventually saw concerned investors withdrawing large sums of money.
Sam Bankman-Fried, co-founder and CEO of FTX, was arrested and sentenced to 25 years in prison for fraud and mismanagement of the exchange. Former Alameda Research CEO Caroline Ellison has been sentenced to 24 months in prison after pleading guilty to charges related to her role in the FTX collapse.
