A US judge has approved FTX's plan to hold a creditor vote on its debt repayment plan. FTX users will soon be able to vote on a proposed plan for multi-billion dollar payouts to those whose funds were frozen on FTX. If the plan is approved, it would compensate customers for losses and settle government fines related to the collapse of Sam Bankman-Fried's cryptocurrency business. 📉

Most FTX clients will receive 119% of their deposits on the bankruptcy filing date in November 2022, according to Bloomberg. Other creditors can recover up to 143% of their debts.

FTX intends to use cryptocurrency prices from November 2022, when it filed for bankruptcy, as the basis for its payout. That is, if a customer had one Bitcoin (BTC) at the time of the FTX crash, they would receive a payout valued at approximately $16,800, which is significantly lower than Bitcoin's current value of approximately $61,000.

FTX says it has recovered $16 billion in assets, including $12 billion in cash, enough to fully pay all customer claims at 2022 prices. In addition, FTX will pay $200 million in priority claims to the Internal Revenue Service.