In the cryptocurrency saga, the turbulent history of FTX, a once-thriving cryptocurrency exchange, is experiencing a new twist. Facing financial difficulties and forced to declare bankruptcy in November 2022, FTX has just presented a new reorganization plan. Under the plan, 98% of its creditors could recover 118% of their claims in cash, sparking both hope and skepticism in the crypto world.
FTX: A rebirth under high pressure!
The cryptocurrency exchange FTX, in the midst of turmoil following its bankruptcy, is proposing a bold reorganization plan. According to this new plan98% of its creditors could recover 118% of their claims in cash within 60 days of court approval, new documents filed Tuesday evening reveal.
This plan also provides that other non-governmental creditors would recover 100% of their debts, to which would be added 9% interest to compensate ” the time value of their investments“. This proposal remains subject to approval by the Delaware Bankruptcy Court, which is responsible for overseeing the bankruptcy proceedings.
These promised payments are higher than previous estimates from the FTX estate, which announced in October that it could only reimburse 90% of customer funds. In January, John Jay Ray III, the current CEO of FTX, revised this estimate, assuring the court that he was able to fully reimburse customers.
Despite the uncertainties, the cryptocurrency market has rebounded since the collapse of FTX, and corollary crypto FTT, as well as the subsequent bankruptcy. But this recovery has not assuaged the anger of many FTX customers, who have been unable to benefit from rising cryptocurrency prices, with their funds stuck in bankruptcy limbo.
In a statement released Tuesday, the FTX estate said it now has $14.5 billion to $16.3 billion in cash available for distribution, after a year and a half of gathering and liquidating the company's scattered assets. worldwide.
“ FTX.com had a massive deficit at the time of filing for Chapter 11 in November 2022 – holding only 0.1% of the Bitcoin and only 1.2% of the Ethereum that customers thought they owned“, specifies the press release. “ As a result, the debtors were unable to benefit from the appreciation of these missing tokens.“
Other sources of value, including investments made by FTX and Alameda Research – like its 8% stake in AI startup Anthropic, which was sold piecemeal to institutional investors for $884 million in March – were liquidated to generate cash to repay debts.
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