Judge Approves FTX Bankruptcy Plan, Causing FTT to Break Through $3.4
In the early hours of this morning, the FTX native token, FTT, surpassed $3.4 after the bankruptcy reorganization plan was accepted by the United States Bankruptcy Court for the District of Delaware.
Today, on the announcement of the bankruptcy plan, the market price of FTT soared over $3.4 and briefly to US$3.43. The price of FTT has jumped 6.27 percent in the last day, and it is now trading at $2.63. Additionally, FTT's trading volume increased by 274.64% on the previous day.
Debtors will announce the plan's implementation date and the expected first distribution date at a later stage.
Within sixty days from the effective date of the bankruptcy plan, 98% of FTX's creditors will get around 119% of their authorized claims, as long as their know-your-customer and other distribution conditions are met, according to the press release. Between $14.7 billion and $16.5 billion is the estimated total worth of property that FTX has gathered, turned into cash, and is ready to be distributed.
This sum encompasses assets held by various entities, including the chapter 11 debtors, the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Administrators of FTX Australia, the US Department of Justice, and other private parties that have assisted with the recovery efforts, as shown in the statement.
Chief Restructuring Officer and CEO of FTX, John J. Ray III, expressed gratitude to users for their patience and said, "Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history."
