FTX creditors presented with new repayment plan in bankruptcy filing

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FTX creditors, including thousands of Italians, may be about to see some light at the end of the tunnel. The exchange presented a new plan to repay creditors in a detailed document sent to the District of Delaware. According to what is written, the plan could allow almost all creditors (98%) to recover the money lost in the platform that failed in November 2022 . the 16.3 billion dollars that can be distributed. According to the document, customers who need to recover an amount of up to 50 thousand dollars will get back about 118% of their money thanks to the cumulative annual interest of 9%; it is estimated that around 98% of creditors will get their money back.

Those who responded to the refund request will be able to get their money back as part of the compensation process. Among them are, as mentioned, thousands of Italian customers who, before the failure of the platform (dated November 2022), were the second most used digital currency exchange in the world . The crack was a big blow and from day to night it was no longer possible to withdraw money.

Ftx’s assets are the result of nearly two years of asset recovery activities through the liquidation of the company’s collateralized (and uncollateralized) assets. The reorganization plan still needs to be approved by the bankruptcy court. Ftx finances itself by selling a series of assets, including investments from the Alameda fund, by founder Sam Bankman-Fried.

In addition, the plan includes agreements with the Internal Revenue Service (IRS) and the Commodity Exchange Commission to subject their claims and to recover funds to a special fund for further compensation to customers and creditors. An additional agreement with the US Department of Justice would allow distribution of more than $1.2 billion without additional administrative costs. The collaboration of various key players in the development of recovery plans and efforts is also acknowledged.

John J. Ray III, CEO and chief restructuring officer of FTX, said: «We are pleased to be able to propose a bankruptcy plan that provides 100% of the bankruptcy claim amounts plus interest to creditors non-government. On behalf of the Ftx independent board of directors, I would like to express our deep gratitude to the many government agencies, official liquidators, non-US consumer committees, class action plaintiffs, BlockFi and all their professionals for their commitment in development. of the plan and the successes achieved. Finally, I would like to thank FTX’s customers and creditors for their patience during this process.”