A federal bankruptcy judge ruled on Monday that nearly all creditors of bankrupt cryptocurrency company FTX will ultimately make money from the money they put into the exchange.
almost Two years after FTX fell into bankruptcyA Delaware judge approved the company’s reorganization plan, which involves paying more than $14 billion to customers of the failed cryptocurrency exchange.
“Going forward, we are prepared to return 100% of the bankruptcy claims plus interest to non-governmental creditors through the largest and most complex bankruptcy estate asset distribution in history,” said John Ray, who succeeded FTX as CEO. The company filed for bankruptcy at the end of 2022, in a statement on Monday.
Wray, who also led Enron through bankruptcy, added that the estate was working to finalize arrangements for distributions to creditors around the world.
The company said it has collected properties worth $14.7 billion to $16.5 billion for distribution. Fortis previously estimated The company owes creditors about $11.2 billion.
Under the plan approved by Delaware Bankruptcy Judge John Dorsey, 98% of FTX creditors will receive 119% of their allowed claims by the time the exchange files for bankruptcy protection in November 2022.
The price is Bitcoin Since FTX’s collapse, its stock price has risen approximately 260%. FTX raised funds through the sale of a number of assets, including venture capital investments held by the exchange and other investments held by Bankman-Fried’s crypto hedge fund Alameda Research.
One of FTX’s most high-profile investments is in an artificial intelligence startup man-made, This is caused by Amazon. FTX sells majority stake in Anthropic Sales this year are approaching $900 million.
The bankruptcy estate said it will make a separate announcement on the effective date of the payment plan and when distributions are expected to begin.
FTX founder Sam Bankman-Fried was Found guilty of seven criminal charges Last November, included allegations related to the theft of billions of dollars from FTX clients. He was sentenced to 25 years in prison.
— CNBC’s Dan Mangan contributed to this report.
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