Price: $0.38534 0.5872%
Market Cap: 56.56B 1.9018%
Volume (24h): 24.58B 0.4%
Dominance: 1.9018%
Price: $0.38534 0.5872%
Market Cap: 56.56B 1.9018%
Volume (24h): 24.58B 0.4%
Dominance: 1.9018% 1.9018%
  • Price: $0.38534 0.5872%
  • Market Cap: 56.56B 1.9018%
  • Volume (24h): 24.58B 0.4%
  • Dominance: 1.9018% 1.9018%
  • Price: $0.38534 0.5872%
Home > Information news > Bankrupt Crypto Exchange FTX Lines Up $16 Billion To Repay Creditors

Bankrupt Crypto Exchange FTX Lines Up $16 Billion To Repay Creditors

Release: 2024/05/08 21:47 Reading: 276

Original author:Bitcoinist

Original source:https://bitcoinist.com/?p=298885

Bankrupt Cryptocurrency Exchange FTX Unveils Repayment Plan

In a press release on May 7, FTX disclosed a new reorganization strategy with the United States Bankruptcy Court of Delaware, aiming to reimburse creditors and customers in full and provide billions in compensation for the time value of their investments.

Reimbursement Plan Details

FTX will repay 98% of its customers at least 118% of allowed claims in cash. The distribution of funds will include all of the company's assets at the time of its collapse in November 2022.

The exchange has secured between $14.5 billion to $16.3 billion through asset sales and properties owned by the company, including assets under control of the "Chapter 11 debtors," FTX Digital Markets Ltd., FTX Australia, and various private parties involved in the recovery process.

Repayment Strategy

FTX will make complete payments to non-governmental creditors based on the value of their claims determined by the Bankruptcy Court. A subordination arrangement is proposed for governmental creditors, prioritizing interest payments to primary classes of customers and creditors at up to 9%.

A "convenience class" will be established for creditors with claims valued at $50,000 or less, streamlining the payment process for smaller creditors.

Key Settlements

FTX disclosed several settlements in its repayment plan:

  • Resolution of $24 billion in claims by the Internal Revenue Service (IRS) with a $200 million cash payment and $685 million subordinate claim.
  • Proposed agreements with the IRS and the Commodities Futures Trading Commission (CFTC) to subordinate tax claims.
  • Approved settlement with the Joint Official Liquidators of FTX Digital Markets, Ltd., and BlockFi, FTX's largest creditor.

Approval and Implementation

The amended repayment strategy is awaiting approval from the Bankruptcy Court. If approved, creditors are expected to receive 118% of the value of their allowed claims within 60 days of the plan's effective date.

FTT Token struggles to break $2 | Source: FTTUSDT on Tradingview.com Featured image from CoinMarketCap, chart from Tradingview.com

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