Nearly two years after FTX went bankrupt, a Delaware judge has approved the company's reorganization plan, which includes paying more than $14 billion to customers of the collapsed cryptocurrency exchange.
“Looking ahead, we are prepared to return 100% of our bankruptcy claim amounts plus interest to non-government creditors through what will be the largest and most complex bankruptcy estate asset allocation in history,” said John Ray, who then took over as FTX's CEO. The company declared bankruptcy in late 2022, in a statement Monday.
Ray, who shepherded Enron through bankruptcy, added that the company is finalizing arrangements to make distributions to creditors around the world.
The company says it has raised between $14.7 billion and $16.5 billion in properties for distribution. FTX previously estimated it owed creditors about $11.2 billion.
Under the plan approved by Delaware Bankruptcy Judge John Dorsey, 98% of FTX's creditors would receive 119% of the amount of their allowed claim as of November 2022, when the exchange filed for bankruptcy protection.
price Bitcoin It is up almost 260% since the FTX failure. FTX raised the money by selling a number of assets, including venture capital investments held by the exchange and other investments held by Alameda Research, Bankman-Fried's cryptocurrency hedge fund.
One of FTX's most notable investments was in AI startup Anthropic, which is backed by Amazon. FTX sold most of its stake in Anthropic this year for nearly $900 million.
The bankruptcy estate says it will make a separate announcement about the date the payment plan will take effect and when it expects distributions to begin.
FTX founder Sam Bankman-Fried was convicted of seven criminal charges last November, including charges related to stealing billions of dollars from FTX clients. He received a 25-year prison sentence.
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