On the morning of October 8, 2024, a US judge approved FTX's bankruptcy plan, ending a two-year legal process since the exchange filed for bankruptcy in 2022 due to management team violations.
Accordingly, the approval of the bankruptcy plan will officially pave the way for the payment of creditors and former customers immediately after the judgment.
98% of creditors will receive at least 118% of the value of crypto assets they held on the exchange in cash
Although the plan received consensus from 94% of creditors representing about $6.83 billion, it was criticized by Sunil Kavuri, representative of FTX's largest creditor group, who argued that assets should be repaid in crypto instead of dollars when the exchange files for bankruptcy in 2022.
Managing Director at law firm Alvarez & Marsal North America said that after thorough discussions, it was not possible to implement a crypto debt repayment plan due to FTX not having enough assets.#crypto necessary to carry out this process