NEW YORK: Crypto exchange FTX will have between US$14.5bil to US$16.3bil to pay its creditors and customers, according to an amended reorganisation plan filed by the company on Tuesday in a US bankruptcy court.
FTX said it has anticipated the figure based on monetising assets, most of which were investments owned by Alameda Research, a crypto-focused hedge fund controlled by Sam Bankman-Fried, FTX Ventures businesses and litigation claims.
The amount for distribution includes assets under the control of the chapter 11 debtors, as well as those assets controlled by liquidators of FTX Bahamas Digital Markets, Bahamas Securities Commission, liquidators of FTX’s Australian unit, the United States Department of Justice and several private parties, the statement added.
The company said the amended plan focused on a series of settlements reached consensually with the key stakeholders, including cases that are still subject to court approval.
The plan put forward by FTX creates a “convenience class” for creditors with claims of US$50,000 or lower, under which it anticipates that the majority of the creditors will receive about 118% of the amount of their claims within two months if approved by the court.
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts, plus interest for non-governmental creditors,” chief executive officer John Ray said.
In February, the distressed crypto currency trading platform had US$6.4bil in cash.
Earlier this year, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison by a judge for stealing US$8bil from customers.
FTX, once among the world’s top crypto exchanges, shook the sector in November 2022 by filing for bankruptcy, leaving an estimated nine million customers and investors facing billions of dollars in losses. — Reuters
