After nearly two years of waiting, FTX's restructuring plan was finally approved by the court on Monday (7). Creditors can expect to get their money back, although there are still some dissenting opinions.

In May, the entity overseeing the failed crypto exchange FTX announced its compensation plan. The entity estimated that over $16 billion in assets will be successfully recovered and returned to victims.

Over $16 billion in compensation

The Bankruptcy Court for the District of Delaware has agreed to approve FTX’s asset compensation plan. Under the plan, 98% of affected creditors and users will receive up to 118% of the assets they requested.

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Creditors will begin receiving their payments within 60 days of the plan’s entry into force. The total amount of compensation, converted into cash, is expected to range from $14.7 billion to $16.5 billion. The plan had already received support from 94% of FTX’s creditors and customers.

“The Court’s confirmation of our Plan is a significant milestone on our path to distributing money to customers and creditors,” said John J. Ray III, Chief Executive Officer and Head of Restructuring at FTX.

That sum is nearly double that of the Mt. Gox case and 4.5 times the amount of selling pressure from the German government last quarter.

Distribuição de ReivindicaçÔes da FTX.FTX Claims Distribution. Source X (Twitter)

Since the refund is not in crypto but in cash, many predict that this could boost the market.

“$16 billion payout to crypto investors. Very bullish,” commented investor Crypto Rover.

However, a representative of the creditors, Sunil Kavuri, criticized the plan, calling it a distortion of the truth. His argument is based on the fact that FTX’s asset recovery is calculated based on current market prices, while the compensation for users is calculated based on the prices at the time of FTX’s crash.

Read more: Understanding the collapse of the FTX exchange

According to Kavuri, this means that users will only get 20% to 25% of their assets back. Furthermore, only creditors claiming less than $50,000 can expect to receive compensation by the end of this year. As such, larger claims will likely be delayed until the middle of next year.

The article US approves compensation plan for FTX victims appeared first on BeInCrypto Brasil.