FTX customers to vote on bankruptcy repayment plan

A U.S. judge approved FTX’s plan to poll creditors on its Chapter 11 repayment.

FTX users will soon have the opportunity to vote on the proposed multibillion-dollar plan to pay back individuals whose funds were trapped on FTX since its collapse.

Judge John Dorsey of the District of Delaware is allowing FTX advisers to seek customer votes on their Chapter 11 plan. If approved, this plan will repay customers and address government penalties related to the collapse of Sam Bankman-Fried’s crypto business.

Repayment

Creditors have the power to influence restructurings through Chapter 11 voting, and while FTX’s plan is supported by key committees representing customer interests, there is opposition from a vocal contingent demanding major changes.

According to Bloomberg, the majority of FTX clients are set to receive 119% of their holdings on the day the company filed for Chapter 11 in November 2022. Court documents suggest that other creditors may reclaim as much as 143% of their owed amounts.