Bankruptcy court rules! FTX to refund 119% of claim amount within 60 days
After nearly two years since the cryptocurrency exchange FTX filed for bankruptcy, a Delaware judge in the United States bankruptcy court has approved FTX's reorganization plan. 98% of FTX creditors are expected to receive approximately 119% of their allowed claims within 60 days of the plan taking effect.
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According to the official press release, FTX expects the total value of assets to be collected, converted into cash, and available for distribution to fall between $14.7 billion and $16.5 billion. This amount includes assets under the control of the Chapter 11 debtor as well as assets under the control of the joint official liquidators of FTX Digital Markets, Ltd. (Bahamas), the FTX Australia administrators, the U.S. Department of Justice, and assets under the control of dozens of private participating institutions. FTX will announce the effective date of the plan and the expected date of the first distribution separately.
John J. Ray III, CEO and the restructuring officer of FTX, stated:
We are prepared to make the largest and most complex bankruptcy asset distribution in history, returning 100% of the bankruptcy claim amounts and interest to non-government creditors and distributing to creditors in over 200 jurisdictions globally. We are finalizing the ultimate agency agreement to return funds to clients worldwide as safely and quickly as possible.