Two years after the collapse of the cryptocurrency exchange, FTX claims that almost all of its customers will get their money back, and some will even get more.
Even though the value of bitcoin and other digital assets has increased significantly after the collapse of the FTX exchange in November 2022, they will not receive the profits on their holdings that have occurred over the previous two years.
FTX is “glad to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts,” according to John Ray III, chief restructuring officer of the company. Within 60 days of the court’s approval of the scheme, FTX will start disbursing the money. Earlier this year, the attorneys for FTX stated that they anticipate that clients will “eventually be paid in full.”
According to FTX’s unsecured creditors committee member Arush Sehgal, “in reality [I] am only getting 25% of my Bitcoin back, and that will be over many years,” Bloomberg informed.
In a reorganization plan that was released late on Tuesday, FTX stated that it believes it owes creditors approximately $11.2 billion. According to the company, it must pay out between $14.5 billion and $16.3 billion to creditors.
John J. Ray III, who became FTX’s chief restructuring officer and chief executive officer, stated, “We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.”
The reorganization team’s sale of many other assets held by FTX and its sister business, Alameda Research, made that strategy viable. Among these were shares in Anthropic, the artificial intelligence startup funded by Amazon, which is currently valued at close to $20 billion. According to FTX, the corporation has sold $900 million worth of shares this year.
Sam Bankman-Fried, the well-known founder of FTX, was found guilty on seven criminal counts in early November, including one that included stealing billions of dollars from FTX’s clients. He was sentenced to 25 years in prison.
FTX was able to raise the funds through the sale of several assets, including venture investments that the exchange owned and additional investments that Bankman-Fried’s cryptocurrency hedge fund, Alameda, held.