The total repayment amount will be between $14.7 billion and $16.5 billion.
Reassuring news for FTX creditors. A repayment plan was approved Monday, October 7, by the United States Bankruptcy Court for the District of Delaware. Former users of the platform are about to receive up to $16.5 billion… but not in crypto.
“Under the terms of the plan, 98% of FTX’s creditors will receive approximately 119% of the amount of their authorized claims within 60 days of the plan’s effective date, subject to know-your-customer and other requirements. distribution requirements. FTX anticipates that the total value of goods collected, converted into cash and available for distribution will be between $14.7 billion and $16.5 billion,” Justice explains.
Almost two years after the bankruptcy of the cryptocurrency exchange platform, this agreement will put an end to the FTX saga. By November 2022, FTX had declared bankruptcy, leaving millions of customers around the world without access to their accounts. Also, approximately $8 billion in customer funds had been reported missing at that time.
BFM Crypto, the Club: FTX, soon a refund for users? – 02/04
The value of bitcoin multiplied by 3.5 times since bankruptcy
Last year, former boss Sam Bankman-Fried was convicted of stealing client funds before the platform collapsed and was sentenced to 25 years in prison. For her part, Caroline Ellison, his former girlfriend and former general manager of Alameda Research, the hedge fund at the center of the affair, had pleaded guilty at his trial and was sentenced Tuesday September 24 to two years in prison for his role in the affair.
John J Ray III, an attorney appointed to handle the bankruptcy process, said approval of the plan was an “important step” in the company’s efforts to return money to individuals and businesses. “Going forward, we are prepared to return 100% of the bankruptcy claim amounts, plus interest, to non-governmental creditors, through what will be the largest and most complex distribution of bankruptcy assets in the world. “history,” he said.
Creditors should therefore receive their funds 60 days after the plan comes into effect. However, this date has not yet been decided. Some FTX victims, however, are disappointed with this decision. Internet users explained on X (formerly Twitter) that the cash reimbursement would not compensate for the loss of cryptocurrencies, which would be much more valuable today if the platform had not gone bankrupt. In November 2022, one bitcoin was worth 16,000 euros, compared to 56,000 euros today.
