📑FTX Repayment Plan Approved: Customers Expected to Be Repaid $16.5 Billion by Early 2025!
FTX plans to start repaying customers and creditors up to $16.5 billion in early 2025. This repayment plan has currently been approved by the court, and creditors are also strongly supportive, with each person expected to recover an average of 119% of their claim value, and some may even recover up to 140% of their claim!
According to FTX Debtors CEO John J. Ray III, they are working hard to ensure everything proceeds smoothly. It is expected that by early December, FTX will reach agreements with some professional distribution agents who will help handle this complex recovery process globally. Customers will soon be able to receive guidance on how to establish approved accounts through FTX’s customer portal.
By the end of December, FTX will announce the effective date of this plan, provided the court approves the disputed claim reserve amount. Once the plan is effective, the first distribution to creditors is expected to take place within 60 days.
This restructuring plan was approved by the Delaware Bankruptcy Court, and creditors overwhelmingly support it. FTX estimates that the total amount they can recover is between $14.7 billion and $16.5 billion, which includes assets recovered from the U.S. Department of Justice and international regulatory agencies.
The FTX bankruptcy case is a significant case, accompanied by some executives' criminal convictions. Among them, former FTX CEO Sam Bankman-Fried was sentenced to nearly 25 years for telecom fraud and other charges, while other executives received varying degrees of punishment.
This is undoubtedly good news for investors who have experienced the FTX bankruptcy turmoil. Although the road ahead is still full of challenges, this progress at least brings a glimmer of hope to the victims.
Let’s wait and see how FTX gradually steps out of the shadow of bankruptcy and whether creditors can really receive the compensation they deserve.
What do you think FTX’s move means for the cryptocurrency market? Do you think the distribution of these funds can proceed smoothly? Leave your views in the comments.
