ALBAWABA - Defunct cryptocurrency exchange FTX claims that it now has enough resources to be able to pay back victims of the platform’s demise in 2022 in full, with interest on top, the company announced in a press statement, sharing a proposed “reorganization” plan.
The total value of assets gathered, shifted to cash, and available for distribution is anticipated to range between $14.5 billion and $16.3 billion, according to FTX, saying it accomplished this degree of recovery through the monetization of a highly varied assortment of assets, the majority of which were proprietary investments owned by Alameda, FTX’s sister firm, or FTX Ventures, or litigation claims.
“The plan contemplates payment in full of all non-governmental creditors based on the value of their claims as determined by the (relevant) bankruptcy court,” the statement reads, noting that if approved by US authorities, would settle disagreements with private and public stakeholders.
FTX approximates its debt to creditors at $11.2 billion. According to the proposed strategy, consumers with claims worth $50,000 or less will be reimbursed roughly 118% of the value of their permitted claim, with around 98 percent of creditors expected to receive said compensation.
In November 2022, the skyrocketing exchange once peaking at $32 billion evaluation collapsed, causing waves of uncertainty through the cryptocurrency industry as investors rushed to cash out their money. Following Sam Bankman-Fried's resignation as CEO, the organization initiated bankruptcy proceedings.
The founder of the cryptocurrency exchange platform and FTX, Sam Bankman-Fried, 32, has been found guilty in March and given a 25-year jail term for defrauding investors out of nearly $8 billion, according to New York Times, ending one of the biggest rise and fall stories in crypto.
