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.
Yeah. Except we had tokens like SOL that have 10X. We ain't gonna see that, but that's where this 18% upside is from. It's actually a MASSIVE haircut for holders of most decent tokens. BTC upped from 20k to 60K. Should be seeing 200% profits, but these kunts are flipping customer SOL to themselves at a 50% DICKscount. S&C are criminals and belong in jail a floor below Madeoff.
FTX Users Will Be Paid Back, With Interest. They’re Mad Anyway. With bankruptcy payouts based on what accounts were worth in late 2022, customers missed out on a crypto rally that’s quadrupled the price of Bitcoin. https://www.bloomberg.com/news/arti...stomers-over-100-but-they-missed-crypto-rally
Crypto exchange FTX ordered to pay $12.7 billion to customers, US CFTC says https://finance.yahoo.com/news/crypto-exchange-ftx-ordered-pay-161130333.html (Reuters) -A U.S. court has ordered bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers, the Commodity Futures Trading Commission said on Thursday. FTX drew customers in with "an illusion that it was a safe and secure place to access crypto markets," then misappropriated their customer deposits to make its own risky investments, CFTC Chairman Rostin Behnam said in a statement. The repayment order implements a settlement between the CFTC and the bankrupt crypto exchange, which has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse. FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy. The CFTC agreement resolves a potential roadblock to that repayment, ensuring that the government's lawsuit against FTX will not reduce the funds available to its customers. The CFTC agreed not to collect any payment from FTX until all its customers are repaid, with interest. The CFTC settlement requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered during the exchange's collapse. FTX did not immediately respond to a request for comment. Its founder Sam Bankman-Fried was sentenced in March to 25 years in prison for stealing $8 billion from customers. He has appealed the conviction. FTX has used its bankruptcy to reach settlements with U.S. regulators and former business partners and to sell assets that had been purchased with misappropriated customer funds, including real estate and investments in crypto and other tech companies. FTX is currently soliciting votes on its bankruptcy proposal but faces opposition from some customers who feel short-changed by the decision to repay them based on much-lower cryptocurrency prices from November 2022. Votes are due on Aug. 16, and FTX intends to seek final approval of its wind-down plan on Oct. 7.