Key Points:
This announcement follows a significant recovery effort, mainly driven by the monetization of assets, including investments held by Alameda Research, a crypto-focused hedge fund led by Sam Bankman-Fried, and litigation claims.
Under the proposed plan, FTX creditors stand to receive payouts exceeding their claims by up to 142%, with most customers expected to receive 118% of their balances at the time of FTX’s Chapter 11 bankruptcy filing. Notably, non-governmental creditors are set to receive 100% of their claims along with up to 9% interest.
FTX’s CEO, John Jay Ray III, revised earlier estimates, promising full repayment to customers despite initial projections of only 90% reimbursement. However, equity holders will not receive any leftover funds after all debts are settled.
The surge in available funds, from $6.4 billion earlier this year to the current estimate, is attributed to the general rise in cryptocurrency prices, including Solana, heavily backed by FTX’s founder, Sam Bankman-Fried. Additionally, the company has liquidated various assets, including ventures like Anthropic, an artificial intelligence company.
While the proposed payouts signal a favorable outcome for FTX, the final decision rests with US Bankruptcy Judge John Dorsey, who will consider creditor votes on the plan later this summer. The plan, subject to court approval, aims to provide swift resolutions, particularly for FTX creditors with claims of $50,000 or lower, who could see payments within two months if the plan is endorsed by the court.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Explore how John, a NYC taxi driver, struck gold with ETH. See how BlockDAG’s BULLRUN100…
According to Amr Taha, the USDT daily net inflow into cryptocurrency exchanges has jumped above…
BNBChain Google Cloud Investment provides $10M in cloud credits to support MVB program projects, enabling…
Lost Dogs: The Way is an attractive game on Telegram developed by Notcoin combined with…
Google Cloud ZetaChain collaboration brings enhanced security to ZetaChain as Google Cloud joins as a…
From June to August, selling Bitcoin by U.S. and German authorities caused a "nightmare" for…
This website uses cookies.