A US bankruptcy court has given the green light to FTX’s plan to distribute between $14.7 billion and $16.5 billion in payouts to the crypto exchange’s former customers.
According to a recent press release, 98% of the exchange’s creditors are due to receive approximately 119% of the value of their holdings on the day FTX files for bankruptcy in November 2022.
The higher payouts are due to higher crypto prices and FTX’s 8% stake in AI (artificial intelligence) security and research company Anthropic.
FTX’s creditor claims on digital assets are denominated in dollars and are based on the near-lowest crypto prices at the time of the stock market collapse in November 2022. At the time, crypto prices had already plummeted due to the FTX turmoil and the associated contagion that spread everywhere. the sector.
FTX CEO John J. Ray III thanked the case team in a statement, noting that they have recovered billions of dollars by rebuilding the exchange’s books and “pooling assets from around the world.”
“Looking ahead, we stand ready to repay 100% of bankruptcy claims plus interest for non-governmental creditors through what will be the largest and most complex distribution of bankruptcy assets in history. The estate is working to finalize arrangements to make distributions to creditors in more than 200 jurisdictions around the world. In preparation for this process, we are finalizing agreements to engage specialist agents to help us bring chargebacks to customers around the world as safely and quickly as possible.”
Ray III took over from disgraced former CEO Sam Bankman-Fried after the exchange filed for bankruptcy.
Last November, a U.S. jury found Bankman-Fried guilty of bank fraud and conspiracy to commit bank fraud against FTX’s customers, bank fraud and conspiracy to commit bank fraud against Alameda’s lenders, conspiracy to commit securities fraud against FTX investors, conspiracy to commit commodity fraud. against FTX’s customers and conspiracy to commit money laundering.
In March, Judge Lewis A. Kaplan sentenced the former CEO to 25 years in prison and three years of supervised release. He also ordered the 32-year-old to pay an $11 billion forfeiture. Bankman-Fried is appealing his conviction and sentence.
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