has filed a plan in bankruptcy court to repay creditors that have kept cryptocurrencies in distress. The vast majority of customers are set to get their money back with interest, even though they (and borrowers) haven’t been able to make huge gains in the cryptocurrency market since the dramatic collapse of FTX in November 2022 – since then, the price of Bitcoin has more than tripled.
FTX aims to pay non-governmental creditors in full based on the value of their claims as determined by the bankruptcy court. This means that 98 percent of creditors (those with claims up to $50,000) will receive 118 percent of their allowed claims. Other creditors will get their money back, plus what billions of dollars in compensation for the “time value of their investment”.
Government lenders are in line for payments at a rate of nine percent. The Internal Revenue Service and the Department of Justice are among the stakeholders with whom the FTX has negotiated settlements.
The company suggests that if its restructuring plan is rubber-stamped, it can resolve disputes with private and public stakeholders “without costly and protracted litigation.” Despite all that, FTX said it could distribute between $14.5 billion and $16.3 billion in cash.
But where does all this money come from? After all, when FTX 17 months ago, he held just 0.1 percent of Bitcoin and 1.2 percent of Ethereum, which his clients thought he had.
FTX said it was able to make money from an “extraordinarily diverse collection of assets, most of which are investments or lawsuits owned by Alamedaor FTX Ventures entities.” whom TechCrunch according to reports, the assets tracked by FTX CEO John J. Ray III and his team include nearly $8 billion in real estate, political donations and venture capital investments.
The company unveiled an updated reorganization plan just weeks after co-founder and former CEO Sam Bankman-Fried (aka SBF) was appointed. . He was in November on charges including conspiracy to commit wire fraud and money laundering.
