In an unexpected turn of events, bankrupt cryptocurrency exchange FTX recently announced a new repayment plan that aims to fully compensate creditors and customers. The plan also includes a substantial compensation offer to take into account the time value of their investments.

While it was initially expected that customers would be the main beneficiaries, the biggest winners of the repayment plan were not the customers themselves but the bankrupt traders.

Full refunds from FTX

As Bitcoinist reported, FTX’s reorganization plan was filed with the U.S. Bankruptcy Court for the District of Delaware, outlining the distribution of funds to customers affected by the exchange’s fraudulent scheme.

The plan involves distributing all of the company’s assets from its collapse in November 2022 to its creditors and customers. FTX has disclosed several settlement agreements with major economic stakeholders, some of which are still awaiting finalization and court approval.

Notably, a key settlement involved resolving a $24 billion claim filed by the U.S. Internal Revenue Service (IRS), with FTX agreeing to pay $200 million in cash and $685 million in subordinated claims.

Bankrupt traders emerge as real winners

Contrary to expectations, the real beneficiaries of the repayment plan are bankrupt traders who acted quickly to buy claims for less than a fraction of their value before FTX officially filed for bankruptcy.

These hedge funds and individual investors have seen bids for claim amounts ranging from 10% to 101%, a testament to their savvy decision to take advantage of this opportunity.

According to Fortune, hedge funds specializing in distressed debt, such as Attestor, Baupost, and Farallon, have emerged as frontrunners in earning big returns from FTX’s assets.

Hedge funds specializing in distressed debt, such as Attestor, Baupost and Farallon, have emerged as frontrunners in earning big returns from FTX assets, according to Fortune.

The funds bought claims worth hundreds of millions of dollars and are expected to make significant profits. Other notable beneficiaries include Louis d’Origny, the founder of claims buying platform FTX Creditor, who is expected to make more than $25 million from his personal investment.

Although FTX's repayment plan has given some people considerable returns, it does not mean that all claimants are satisfied with it. Some investors believe that the value of the cryptocurrency tokens they put forward in the claim should be calculated according to the current market price, rather than the previous lower price standard.

Arush Sehgal, an investor and former member of FTX’s unsecured creditors committee, has criticized the current administrators’ sales strategy and believes the damage caused by the current administrators is more serious than the original crimes committed by former CEO Sam Bankman-Fried.

The exchange's failed co-founder and CEO, Bankman-Fried, is currently being held at the Metropolitan Detention Center in Brooklyn after being sentenced to 25 years in prison for defrauding customers. #FTX #资产索赔