Crypto exchange FTX's bankruptcy plan has been green-flagged by a US judge.
Details
- Under the terms of the plan, 98% of the creditors will receive ~119% of the amount of their allowed claims within 60 days after the effective date
- That could, however, alter based on KYC and other distribution requirements
- Per the exchange’s estimates, the total value of property collected, converted to cash, and available for distribution hovers in the $14.7-$16.5 billion bracket
Why should you pay attention?
- This marks the official wrap-up of legal proceedings associated with FTX
- The estate is working to finalize arrangements to make distributions to creditors across more than 200 jurisdictions around the world
- The debtors will separately announce the effective date of ‘The Plan’ and the estimated first distribution date
- FTX creditors are set to make money on the exchange’s bankruptcy — $1.19 for every dollar
Who said what?
- John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX, said,
"Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history”
- The executive added,
“In preparation for this process, we are finalizing agreements to retain specialized agents to assist us in getting recoveries to customers around the world as safely and expeditiously as possible”
- Meanwhile, Judge John Dorsey exclaimed,
“This is a model case for how to deal with a very complex Chapter 11 bankruptcy”
Other related news:
- Alameda Research CEO Caroline Ellison was sentenced to two years in prison toward the end of September
- She was parallelly ordered to forfeit $11 billion for her role in the exchange’s collapse
- Ex-FTX executives Nishad Singh and Gary Wang’s sentencing is slated for later this month and late-November respectively
