The liquidators of FTX, once the world’s second largest cryptocurrency exchange platform until its bankruptcy at the end of 2022, are expected to recover between $14.5 and $16.3 billion, according to a press release published Tuesday by the company.
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An amended reorganization plan was filed during the day with the bankruptcy court of Delaware (northeast United States), indicated FTX, specifying that it must now be validated by the courts to be implemented. artwork.
“The plan envisages the centralized distribution to all customers and other creditors throughout the world of all assets associated with FTX at the time of its bankruptcy in November 2022, regardless of the location of these assets at that time,” notes the press release. .
The estimated total value of these assets, converted into cash, “will reach between $14.5 billion and $16.3 billion.”
This amount, specifies FTX, represents the assets under the control of the liquidators within the framework of the bankruptcy procedure in the United States known as “Chapter 11”, of the American Department of Justice, as well as under the control of authorities in the Bahamas – where FTX had its headquarters —, in Australia and “dozens of private third parties who participated in the recovery efforts”.
Above all, it is an “extremely diverse range of assets” that were held by FTX and its trading company Alameda.
FTX imploded in November 2022 when customers, concerned about managing their money, sought to make mass withdrawals.
At the time of the bankruptcy filing, approximately $9 billion was missing.
The liquidators, who have already recovered more than 6.4 billion in cash, indicated several months ago that they planned to fully reimburse injured customers.
According to Tuesday’s press release, all non-governmental creditors will be reimbursed 100% of the value of their claim which was validated by the bankruptcy court.
It even specifies that 98% of creditors with a maximum of $50,000 should receive approximately 118% — including interest — of this value established by the courts, within 60 days after validation of the amended plan.
Sam Bankman-Fried, co-founder and boss of the company, was convicted in early November of fraud for diverting billions of dollars to Alameda without the consent of FTX clients. He was sentenced on March 28 to 25 years in prison, and appealed.
