FTX Bankruptcy Plan Approved, Customers to be Repaid $16.5 Billion in Assets

Following court approval of its bankruptcy plan, FTX is set to fully refund customers using up to $16.5 billion US in assets recovered since the exchange’s collapse. The plan, consisting of settlements with various parties, will prioritize repaying customers first before addressing other claims. Customers with up to $50,000 US on the exchange are expected to be repaid within 60 days.

Founder’s Conviction and Recovery Efforts

FTX’s downfall stemmed from founder Sam Bankman-Fried’s misuse of customer funds to cover hedge fund losses, resulting in his conviction. Despite this, FTX managed to recover substantial assets, allowing for customer reimbursement. Negotiations with the U.S. Department of Justice over seized funds are ongoing.

Successful Settlements and Assets Recovery

Government agencies agreed to prioritize customer repayment over fines, facilitating FTX’s asset recovery process. The company’s diligent efforts in reviving assets and selling off investments have paved the way for creditors to benefit from the recovered funds, providing a promising outlook for the resolution of FTX’s bankruptcy.

Customer Reactions and Demands

While the approval of the bankruptcy plan is a significant step forward, customers have expressed mixed feelings regarding the repayment terms. Some argue that the increased value of cryptocurrencies since the exchange’s collapse should warrant higher reimbursements. However, FTX cites the misappropriation of assets by the founder as a hindrance to directly returning deposited crypto.