FTX has submitted a revised plan for restructuring, projecting an estimated distribution of between $14.5 and $16.3 bln

FTX, the cryptocurrency exchange, has revised its reorganization plan, projecting a payout range of $14.5 billion to $16.3 billion for its creditors and clients, as per the latest filing in a U.S. bankruptcy court.

The anticipated sum is based on liquidating assets, predominantly those held by Alameda Research—a crypto hedge fund run by Sam Bankman-Fried, FTX Ventures, and through various litigation claims.

This distribution pool comprises assets managed by the chapter 11 debtors and those overseen by the liquidators of FTX Bahamas Digital Markets, the Bahamas Securities Commission, FTX’s Australian division, the U.S. Department of Justice (DOJ), and a number of private entities. The revised strategy emphasizes settlements agreed upon with principal stakeholders, some of which are pending judicial endorsement.

FTX’s proposal introduces a “convenience class” for claimants owed $50,000 or less, predicting that most will receive approximately 118% of their claim value within two months, subject to court sanction.
CEO John Ray expressed satisfaction with the ability to suggest a chapter 11 scheme that envisages full repayment of bankruptcy claims, plus interest, for non-governmental creditors.

As of February, the beleaguered digital currency trading platform reported having $6.4 billion in cash reserves.
Earlier in the year, FTX’s founder, Sam Bankman-Fried, received a 25-year prison sentence for misappropriating $8 billion from customers.

In a dramatic turn of events, FTX, previously a leading crypto exchange, destabilized the industry in November 2022 by declaring bankruptcy, resulting in an estimated 9 million customers and investors grappling with substantial financial losses.