Judge Approves FTX Bankruptcy Plan

Reading Time: < 1 minute

Jon Dorsey, the US bankruptcy judge, has given his approval to the reorganization plan for FTX. By doing so, he has paved the way for the bankrupt cryptocurrency exchange to repay its creditors billions of dollars.

This decision represents a significant advancement in the company’s efforts to wrap up its operations and compensate its affected customers.

According to the approved plan, 98% of FTX’s creditors will receive around 119% of the amount they are owed within 60 days of the plan’s effective date.

The company estimates that there will be between $14.7 billion and $16.5 billion available for distribution, which includes recovered assets from various sources worldwide.

FTX’s CEO and Chief Restructuring Officer, John J. Ray III, stated that they are prepared to return 100% of the bankruptcy claims, along with interest, to non-governmental creditors.