FTX, once a big name in the crypto world, has finally received court approval for its bankruptcy plan to repay customers with up to $16.5 billion in recovered assets. U.S. Bankruptcy Judge John Dorsey gave the green light during a hearing in Wilmington, Delaware, hailing the plan as a blueprint for managing complex bankruptcy cases. This plan brings together settlements with FTX customers, creditors, government agencies, and international liquidators.
The main aim? To repay 98% of FTX's customers, especially those with $50,000 or less on the platform. These repayments are expected within 60 days of the plan's effective date, still TBD. FTX's downfall in 2022 was caused by the misuse of customer funds by founder Sam Bankman-Fried, who was sentenced to 25 years in prison earlier this year. Heâs appealing his conviction.
Customer Reactions and Concerns
While the bankruptcy plan promises relief for most, reactions are mixed. Some customers, especially those who had deposited cryptocurrency like Bitcoin, are upset that repayments are based on 2022 prices when asset values were much lower. For instance, Bitcoin was worth $16,000 during the bankruptcy filing but has since surged to over $63,000.
David Adler, a lawyer for some creditors, argued that FTX's claim of a 100% recovery doesnât account for the massive rise in crypto prices since the collapse. But FTX explained it can't return the original crypto assets because most were misappropriated.
Next Steps
FTX is still negotiating with the U.S. Department of Justice over an additional $1 billion in seized assets. The company has already recovered billions through asset sales and aims to give creditors up to 118% of their account values as of November 2022. Despite objections, the court has ruled against returning cryptocurrency to customers, focusing on cash-based repayments instead.
It's a tough road ahead, but there's hope on the horizon for those affected by FTX's collapse.
#WeAreAllSatoshi #moonbix #U.S.UnemploymentNewLow #HBODocumentarySatoshiRevealed #BTCReboundsAfterFOMC $BTC
