FTX files amended reorganization plan, expects $14.5-16.3 billion for distribution
Crypto exchange FTX will have between $14.5 billion to $16.3 billion to pay its creditors and customers, according to an amended reorganization plan filed by the company on Tuesday in a U.S. bankruptcy court.
FTX said it has anticipated the figure based on monetizing assets, most of which were investments owned by Alameda Research, a crypto-focused hedge fund controlled Sam Bankman-Fried, FTX Ventures businesses, and litigation claims.
Also Read | FTX founder Sam Bankman-Fried sentenced to 25 years in prison for multi-billion dollar fraud
The amount for distribution includes assets under the control of the chapter 11 debtors, as well as those controlled by liquidators of FTX Bahamas Digital Markets, Bahamas Securities Commission, liquidators of FTX’s Australia unit, the United States Department of Justice (DOJ) and several private parties, the statement added.
The company said the amended plan focuses on a series of settlements reached consensually with the key stakeholders including cases that are still subject to court approval.
The plan put forward by FTX creates a “convenience class” for creditors with claims of $50,000 or lower, under which it anticipates that majority of the creditors will receive about 118% of the amount of their claims within 2 months if approved by the court.
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” CEO John Ray said.
In February, the distressed crypto currency trading platform had $6.4 billion in cash.
Earlier this year, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison by a judge for stealing $8 billion from customers.
FTX, once among the world’s top crypto exchanges, shook the sector in November 2022 by filing for bankruptcy, leaving an estimated 9 million customers and investors facing billions of dollars in losses.
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This story has been published from a wire agency feed without modifications to the text.
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Published: 08 May 2024, 07:40 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.