Global financial regulatory announcements, financial news

FTX to Repay 98% of Creditors 118% of Claims Within 60 Days

May 8, 2024, 05:57 AM

FTX, the bankrupt cryptocurrency exchange, has announced a reorganization plan that will allow it to fully repay its creditors. The exchange has recovered assets worth between $14.5 billion and $16.3 billion, significantly more than the approximately $11 billion owed to customers and other non-governmental creditors. Under the proposed plan, 98% of FTX's creditors are expected to receive at least 118% of their allowed claims in cash within 60 days of court approval. This includes full recoveries for customers who lost money in the exchange's collapse in November 2022, plus interest payments up to 9%.