US bankruptcy judge John Dorsey has given the go-ahead to the reorganisation plan put together by the company, which includes repaying customers who had their money locked into the exchange when it collapsed two years ago.
FTX says it has managed to collect between $14.7 billion and $16.5 billion for distribution. This means that it can pay 98% of creditors approximately 119% of the value in their accounts on the day the exchange filed for bankruptcy.
Creditors are set to receive their funds 60 days after the plan is declared effective.
John Ray, CEO, FTX, says: “Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history.”
While the deal sees customers make a profit, it has not been universally welcomed. According to Reuters, David Adler, an attorney representing four objecting creditors, notes that Bitcoin’s price has soared from $16,000 in November 2022 to over $63,000.
