FTX Creditors Will Be Repaid in Full, Crypto Exchange's Estate Says
By
Angus Berwick
, Reporter
FTX Chief Executive John J. Ray III, who has run the cryptocurrency exchange through bankruptcy, filed a formal plan of reorganization. (Michael Brochstein/Zuma Press)
All of FTX's creditors, except the government, will get 100% of their money back in cash plus interest, the bankrupt cryptocurrency exchange's estate said late Tuesday.
FTX forecast that it will have between $14.5 billion and $16.3 billion in cash to distribute to customers and other creditors from the assets it has collected.
The estate has said before that it expected to settle many creditor claims in full, though that seemed a remote prospect when the firm collapsed in late 2022. On Tuesday, FTX Chief Executive John J. Ray III, who has run the company through bankruptcy, filed his formal plan of reorganization, which a court must now approve.
The FTX estate said it expects to repay all non-governmental creditors in full. Many of the people owed money had balances of less than $50,000 on FTX's trading platform.
These smaller stakeholders, who make up 98% of all creditors by number, are set to get at least 118% of their allowed claims back in cash within 60 days of the plan becoming effective.
Other creditors will receive 100%, plus interest payments totaling billions of dollars overall.
"I want to thank all the customers and creditors of FTX for their patience," Ray said.
FTX said it gathered the sum "by monetizing an extraordinarily diverse collection of assets," including by selling venture-capital investments made by the exchange and Alameda Research, a sister trading firm run by Sam Bankman-Fried. The FTX founder was sentenced to 25 years in jail for fraud earlier this year.
In March, FTX struck $884 million in deals with two dozen buyers, including an Abu Dhabi investor, to sell most of its shares in Anthropic, an artificial-intelligence startup.
By
Angus Berwick
, Reporter
FTX Chief Executive John J. Ray III, who has run the cryptocurrency exchange through bankruptcy, filed a formal plan of reorganization. (Michael Brochstein/Zuma Press)
All of FTX's creditors, except the government, will get 100% of their money back in cash plus interest, the bankrupt cryptocurrency exchange's estate said late Tuesday.
FTX forecast that it will have between $14.5 billion and $16.3 billion in cash to distribute to customers and other creditors from the assets it has collected.
The estate has said before that it expected to settle many creditor claims in full, though that seemed a remote prospect when the firm collapsed in late 2022. On Tuesday, FTX Chief Executive John J. Ray III, who has run the company through bankruptcy, filed his formal plan of reorganization, which a court must now approve.
The FTX estate said it expects to repay all non-governmental creditors in full. Many of the people owed money had balances of less than $50,000 on FTX's trading platform.
These smaller stakeholders, who make up 98% of all creditors by number, are set to get at least 118% of their allowed claims back in cash within 60 days of the plan becoming effective.
Other creditors will receive 100%, plus interest payments totaling billions of dollars overall.
"I want to thank all the customers and creditors of FTX for their patience," Ray said.
FTX said it gathered the sum "by monetizing an extraordinarily diverse collection of assets," including by selling venture-capital investments made by the exchange and Alameda Research, a sister trading firm run by Sam Bankman-Fried. The FTX founder was sentenced to 25 years in jail for fraud earlier this year.
In March, FTX struck $884 million in deals with two dozen buyers, including an Abu Dhabi investor, to sell most of its shares in Anthropic, an artificial-intelligence startup.
