- FTX files Reorganization Plan, assuring that all its customers will receive at least the amount lost during the exchange’s fall.
- 98% of FTX creditors are poised to receive a minimum of 118% of allowed claims in cash.
- The firm anticipates that the total amount available for distribution is between $14.5 and $16.3 billion.
The bankrupt crypto exchange FTX recently filed their anticipated Reorganization Plan in the United States Bankruptcy Court for the District Court of Delaware. The firm has planned the “centralized distribution” to affected customers across the world, if the court approves.
According to a press release, the firm anticipates that the total amount available for distribution is between $14.5 and $16.3 billion. The anticipated figure is mostly based on the monetization of assets related to FTX’s sister firm Alameda Research.
While the platform plans to fully replay creditor claims, FTX also proposes to provide compensation for its customers. Reportedly, within 60 days of effectiveness, 98% of FTX creditors who hold claims below $50,000, are poised to receive a minimum of 118% of allowed claims in cash. The reorganization plan assured that all FTX customers will receive the amount they lost in 2022 when the exchange collapsed.
FTX CEO John J. Ray III shared his gratitude to the government agencies, officials and customers who supported the firm throughout the platform’s journey. He stated,
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors…I want to thank all the customers and creditors of FTX for their patience throughout this process.”
However, industry experts like Mike Belshe, the CEO of BitGo, shared his disagreement with FTX’s plans. He starkly criticized FTX, commenting, “I understand why the bankruptcy process needs to work this way but let’s not pretend victims are getting their money back or that FTX wasn’t as awful as it was.”
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