FTX received court approval on Monday for its recovery plan, which will allow the company to fully reimburse its customers with the $16 billion in assets recovered after the cryptocurrency exchange’s collapse.
U.S. Bankruptcy Judge John Dorsey approved the liquidation plan at a hearing in Wilmington, Delaware, saying FTX’s success made it “an exemplary case of how to handle a very complex Chapter 11 process.”
The plan is based on a series of agreements with FTX customers and creditors, government agencies and U.S. liquidators aimed at shutting down FTX operations outside the United States.
The agreements allow FTX to use its resources to first reimburse customers of its cryptocurrency exchange, before paying potential competing claims made by government regulators. FTX expects to refund 98% of its customers, those who had $50,000 or less in the stock, within 60 days.
FTX’s plan will pay its customers at least 118% of the amount in their accounts in November 2022, the date the company filed for bankruptcy protection.
FTX said the result was a victory for creditors, made possible by its ability to recover money and cryptocurrency assets that disappeared during the company’s collapse. The company has also raised additional funds by selling other assets, including its investments in technology companies such as artificial intelligence startup Anthropic.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
