Almost all creditors of the bankrupt cryptocurrency exchange FTX will profit from the funds they held on the site. This ruling was issued yesterday by a US federal bankruptcy judge.
Image source: Mariia Shalabaieva / unsplash.com
Almost two years after FTX filed for bankruptcy, a Delaware judge has approved the company’s reorganization plan, which includes paying out more than $14 billion to the platform’s customers. “Looking forward, we intend to recover 100% of bankruptcy claims plus interest for non-government creditors in what will be the largest and most complex bankruptcy asset distribution in history,” said John Ray, who took over as FTX’s CEO following the company’s filing. bankruptcy applications.
To date, the company has managed to collect between $14.7 billion and $16.5 billion of property to distribute among creditors – according to previous estimates, FTX owed them about $11.2 billion. Delaware Bankruptcy Judge John Dorsey yesterday approved a plan under which 98% of the site’s creditors would receive 119% of their claims as of November 2022, when the bankruptcy petition was filed.
Since then, the price of Bitcoin has increased by approximately 260%. The company’s new management raised funds by selling a number of assets, including venture capital investments held by the exchange and other investments held by Alameda Research, a company associated with the former head of the exchange. One of FTX’s largest investments was in artificial intelligence startup Anthropic, which this year sold the majority of its stake in the company for nearly $900 million. The effective date of the plan and the start of the asset distribution will be announced separately.
Founder and former head of the FTC, Sam Bankman-Fried, was found guilty of seven criminal counts and sentenced to 25 years in prison and forfeited property worth more than $11 billion.