Bankrupt cryptocurrency exchange FTX has raised enough funds through multiple sales of its assets and tokens to fully compensate creditors for their losses in the collapse event. In addition, creditors will receive additional compensation.
Since November 2022, the restructuring team of FTX, the bankrupt cryptocurrency exchange, has been actively raising funds to repay creditors. After multiple sales of FTX’s assets and tokens, the accumulated funds are sufficient to fully compensate creditors and customers for their losses in the collapse event, even providing additional compensation to creditors.
According to FTX’s statement, once all assets are sold, the company will have up to $14.5 billion to distribute in cash. The amount owed to customers and other non-government creditors is approximately $11 billion.
Depending on the type of claim, some creditors can receive a compensation of 142% of their losses, while the majority of customers (creditors with holdings of $50,000 or less) can receive approximately 118% of their losses.
FTX CEO John Ray stated that this is an incredible outcome in any bankruptcy case, as creditors usually receive only a small amount of compensation in past US bankruptcy cases.
In a document submitted on Tuesday, the restructuring team listed new details for distributing cash to creditors and ending Chapter 11 bankruptcy. 98% of the creditors will receive a compensation of 118% of their losses within 60 days after the plan is approved by the court.
It is understood that US bankruptcy judge John Dorsey plans to hold a hearing in late June to disclose the statement and voting procedures. This means that if everything goes smoothly, most creditors can start receiving compensation as early as September.
Although the market is currently in a downtrend, FTX’s token FTT has risen against the trend. According to CoinGecko data, FTT is currently priced at $1.75, with a 24-hour increase of 7.1% and a 7-day increase of 30.6%.
However, it should be noted that FTX currently has no plans to restart, and FTT is currently more like a meme coin. Please be cautious of the risks.