FTX Bankruptcy Plan Approved: $6.6 Billion Set for Creditor Distribution
U.S. Bankruptcy Judge John Dorsey has approved the FTX Bankruptcy plan, nearly two years after the exchange's collapse and the subsequent appointment of John Ray III as its leader.
This decision provides a much-needed boost for users whose funds were tied up in FTX, as many anticipated a favorable ruling.
The approved plan will distribute $6.6 billion to creditors, with payouts scheduled to occur within four to eight weeks. Last week, a voting process among creditors showed strong support, with 94% backing the plan concerning customer claims.
However, not all stakeholders agreed, particularly Sunil Kavuri, a representative for FTX creditors. Kavuri raised concerns about payment methods, preferring crypto disbursements instead of the approved dollar payouts.
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With the court’s approval, 98% of creditors can expect to receive 118% of their investments in fiat, potentially totaling $16 billion. Judge Dorsey highlighted that FTX’s bankruptcy case is among the most complex seen in similar proceedings.
The fallout from the FTX collapse, which drained around $8 billion in customer assets alongside Alameda Research, continues to impact investors. Under Ray’s management, the company has pursued legal actions against other exchanges and sought to recover donations made by former CEO Sam Bankman-Fried.
As the bankruptcy process concludes, uncertainties remain regarding FTX’s future. Although Ray previously expressed hopes for a company revival, interest from potential investors has been lackluster.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
