Bankrupt cryptocurrency exchange FTX is offering creditors the option to receive their assets in either cash or crypto. The exchange's reorganization plan proposes to repay creditors the U.S. dollar value of their crypto assets at the time of FTX's collapse in cash. The bankruptcy estate is offering a 118% return for 98% of creditors with claims under $50,000. Non-governmental creditors will receive 100% of their claims and potential additional interest payments of up to 9% from when FTX collapsed.

FTX has disclosed that it has more than enough to repay affected parties, having consolidated funds and sold assets, including properties of former FTX executives, to amass over $16 billion. This is significantly more than the approximately $11 billion creditors lost when FTX went bankrupt.

However, some FTX creditors, led by activist Sunil Kavuri, have objected to the proposed plan. They argue that it fails to meet certain requirements of the Bankruptcy Code, including property rights issues, consistent debtors liquidation analysis, and satisfying the best interest test. The deadline for voting is August 16, with a decision expected in early October.