A U.S. judge approved FTX’s plan to poll creditors on its Chapter 11 repayment. FTX customers will soon vote on a proposed multibillion-dollar plan to repay those whose funds were trapped since FTX’s collapse.
Judge John Dorsey of the District of Delaware has granted FTX advisers the authority to seek customer votes on the Chapter 11 plan. If approved, it will repay customers and address government penalties from Sam Bankman-Fried’s crypto business collapse.
Creditors can influence restructurings through voting, but while key committees back FTX’s plan, some vocal groups demand changes. Most FTX clients are set to receive 119% of their holdings from November 2022. Other creditors may reclaim up to 143% of their owed amounts.
FTX will use cryptocurrency prices from November 2022 for repayments, meaning a customer with one Bitcoin (BTC) would receive about $16,800, despite BTC’s current value of around $61,000. The company claims to have recovered $16 billion in assets, including $12 billion in cash.
FTX will also pay the IRS $200 million in priority claims. This repayment approach underscores the strategic importance of resolving customer claims and restoring trust in the crypto market.
