FTX shockingly may be able to repay almost everyone
The bankrupt cryptocurrency exchange FTX announced they were “in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts,” a move that once seemed impossible.
The plan will repay all customers with claims under $50,000 (except governmental creditors) 118% of the funds they had on the exchange — in cash — when it collapsed in November, 2022.
There is a caveat to these numbers, however: Creditors will be repaid based on asset values in November, when bitcoin was trading at well under $20,000. Today, it’s trading at over $62,000, and some creditors are recommending rejecting FTX’s plan.
There is a caveat to these numbers, however: Creditors will be repaid based on asset values in November, when bitcoin was trading at well under $20,000. Today, it’s trading at over $62,000, and some creditors are recommending rejecting FTX’s plan.
