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FTX presents amended reorganization plan, expects distribution of $14.5-16.3 billion From Reuters
(Reuters) – Cryptocurrency exchange FTX will have between $14.5 billion and $16.3 billion to pay its creditors and customers, according to an amended reorganization plan the company filed in a U.S. bankruptcy court on Tuesday.
FTX said it anticipated the figure based on monetization assets, most of which were investments owned by Alameda Research, a cryptocurrency-focused hedge fund controlled by Sam Bankman-Fried, assets of FTX Ventures and litigation.
The amount to be distributed includes assets under the control of the Chapter 11 debtors, as well as those controlled by the liquidators of FTX Bahamas Digital Markets, the Bahamas Securities Commission, the liquidators of FTX’s Australian unit, the US Department of Justice ( DOJ) and from several private parties, the statement adds.
The company said the amended plan focuses on a series of agreements reached consensually with key stakeholders, including cases that are still subject to court approval.
The plan presented by FTX creates an “affordability class” for creditors with claims of $50,000 or less, under which most creditors are expected to receive approximately 118% of the amount of their claims within 2 months if approved by the court.
“We are pleased to be able to propose a Chapter 11 plan that provides for 100% repayment of bankruptcy claim amounts plus interest to non-government creditors,” said CEO John Ray.
As of February, the struggling cryptocurrency 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 clients.
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FTX, once among the world’s leading cryptocurrency exchanges, rocked the industry in November 2022 by declaring bankruptcy, leaving around 9 million customers and investors facing billions of dollars in losses.