ftx refunds customers-themetaeconomist

FTX's collapse, customers to be repaid?

9 May 2024

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More than a year and a half after the FTX exchange's bankruptcy a new proposal to repay victims of the 2022 crash, was unveiled. FTX now promises to refund all creditors and says the plan is "subject to finalization and approval" by the U.S. Bankruptcy Court for the District of Delaware. Some experts say that may not be enough.

FTX has proposed a new reorganization plan that would see a whopping 98% of its creditors recover 118% of their claims - in cash - within 60 days of court approval, according to new documents filed Tuesday evening, shared also by Coindesk.
FTX's available assets would now be between 14 and 16.3 billion dollars, thanks to the intense fund recovery activity through the liquidation of collateral (and non-collateral) assets of the company.
Only creditors who hold claims of less than $50,000 will be entitled to the 118% recovery.

According to FTX's plan, other non-government creditors will recover 100% of their claims plus interest of up to 9% to compensate them “for the time value of their investments.” The deal is still subject to approval by the Delaware bankruptcy court overseeing the bankruptcy case. The proposed payments are higher than previous estimates from FTX Assets, which in October said it expected to repay only 90% of client funds.

From the creditors side, the conditions are not so positive. Wired reported that "some creditors of the bankrupt crypto exchange FTX are preparing to reject a plan that would see them recover 118 percent of the money they lost. The proposal is far less generous than it might seem, they claim".

SOURCE: Coindesk, Wired

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