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Cryptocurrency exchange FTX, which went bankrupt in November 2022, has announced that almost all of its customers will be able to get back what they lost in cash, and then some, under a new proposed plan.
According to lateness Tuesday’s submission After selling all of its assets, FTX will receive between $14.5 billion and $16.3 billion in cash, according to a report filed by FTX with the U.S. Bankruptcy Court for the District of Delaware. That amount is more than enough to cover the $11.2 billion owed to creditors.
Most of FTX’s creditors (98%) are customers with claims of $50,000 or less.
If the court approves the proposed plan, this group of 2 million people would receive 118% of their authorized claims in cash within 60 days.
According to FTX CEO John Ray, who took over after FTX’s bankruptcy, the percentage is “100% of the bankruptcy debt amount plus interest.”He also led enron Through bankruptcy.
“This is just an incredible outcome for any bankruptcy,” Ray said. bloomberg.
John J. Ray III, FTX Group CEO. Photo credit: Tom Williams/CQ-Roll Call, Inc, Getty Images
Creditors will know how to vote on the plan after a court hearing next month.
Ray said this is the first time a record 2 million customers and other creditors will be able to seek repayment in a bankruptcy case.
Related: Who is FTX founder Sam Bankman Fried and what did he do? Everything you need to know about the disgraced crypto king
By selling such assets, FTX was able to raise funds to repay its debt. $900 million in equity Belongs to AI company Anthropic.
According to Bloomberg, crypto exchanges will likely be able to repay their customers, but shareholders will likely be left with nothing after taking government charges into account.under the usa bankruptcy lawall debts must be paid before stockholders can collect.
Payments to customers will reflect the price of the cryptocurrency in 2022, not the current price. Cryptocurrency prices have been rising for two years, with some social media users complaining about the return on investment.
“If I had Bitcoin at the time of the collapse, it would have been worth 16,000,” one Reddit user said. Posted. “You’re compensated for 16,000 Bitcoins, not 62,000 worth now. So that’s a little disingenuous.”
a statistics chart The paper, published on Wednesday, confirms the estimated price of Bitcoin in November 2022 and the latest price.
Related: Sam Bankman Freed sentenced to 25 years in prison for multi-billion dollar cryptocurrency fraud
US prosecutor a label is attached Last year, FTX was labeled “one of the largest financial frauds in U.S. history,” costing customers $8 billion. FTX founder Sam Bankman Freed, 32, was sentenced to 25 years in prison in March.