Bankrupt cryptocurrency exchange FTX has raised enough funds through the sale of its assets and tokens to fully compensate creditors for their losses in the collapse and even provide them with additional rewards.
Since its bankruptcy in November 2022, FTX’s restructuring team has been actively raising funds to repay creditors. After multiple sales of FTX’s assets and tokens, the accumulated funds are now sufficient to fully compensate creditors and clients for their losses in the collapse, even resulting in additional rewards.
According to a statement from FTX, once all assets are sold, the company will have up to $14.5 billion to distribute, with debts to customers and other non-government creditors amounting to approximately $11 billion.
Depending on the type of claim, some creditors can receive compensation for up to 142% of their losses, while the majority of clients (creditors with amounts below $50,000) can receive approximately 118% of their losses.
FTX CEO John Ray stated that this is an incredible outcome in any bankruptcy case, as in previous US bankruptcy cases, creditors usually receive only a small amount of compensation.
In a document submitted on Tuesday, the restructuring team listed new details of cash distribution to creditors and the termination of Chapter 11 bankruptcy. It is expected that 98% of creditors will receive 118% of their losses within 60 days after the plan is approved by the court.
It is understood that US bankruptcy judge John Dorsey plans to hold a hearing on the disclosure statement and voting procedures in late June. This means that if everything goes smoothly, the majority of creditors can start receiving compensation as early as September.
Although the market is currently in a downward trend, FTX’s token FTT has risen against the trend. According to CoinGecko data, FTT is currently priced at $1.75, with a 24-hour increase of 7.1% and a 30.6% increase in the past 7 days.
However, it should be noted that FTX currently has no plans to restart, and FTT is currently more like a meme coin. Please be cautious of the risks.