FTX creditors are to be fully reimbursed following the collapse of the cryptocurrency exchange in late 2022.
A restructuring plan submitted by the administrators indicates that 98% of the creditors will recover 118% of their validated claims in cash within 60 days following the plan’s approval.
The remaining creditors are set to receive 100% of their claims along with additional compensation.
The estimated total assets available for distribution range between $14.5 billion and $16.3 billion. According to FTX, creditors could also receive up to 9% in retroactive interest payments from the date of the exchange’s downfall.
FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison for his role in the exchange’s failure.
“FTX has managed to achieve these recovery levels by liquidating an extremely diverse portfolio of assets, including proprietary investments of the Alameda or FTX Ventures firms, or through litigation claims,” stated the press release.
The recovery sum could have been greater, but at the time of its collapse, FTX only possessed 0.1% of the bitcoin and 1.2% of the Ethereum that customers believed were maintained on the platform.
Since November 2022, the value of Bitcoin has almost quadrupled, boosting the broader cryptocurrency markets.
FTX’s chief restructuring officer John J. Ray III expressed gratitude to “various government agencies, including the United States Department of Justice, the Commodity Futures Trading Commission, the Internal Revenue Service, and the Securities Commission of The Bahamas, for their relentless work, cooperation, and support during this intricate recovery process.”
“Lastly, I would like to thank all the customers and creditors of FTX for their patience throughout this ordeal,” he concluded.
