FTX has stated that nearly all of its customers will receive their owed funds within two years of the cryptocurrency exchange collapsing, with some receiving even more. According to a court filing on Tuesday, FTX disclosed it owes around $11.2 billion to creditors, while estimating it has between $14.5 billion and $16.3 billion available for distribution.
The filing outlines that after fulfilling claims in full, additional interest payments will be provided to creditors if funds remain, with a 9% interest rate for most creditors. The plan specifies that customers and creditors owed $50,
000 or less will receive approximately 118% of their claim, covering about 98% of customers.
The FTX logo (Via Riley Jacks/Shutterstock)
FTX attributed its ability to recover funds to monetizing a range of assets, primarily consisting of proprietary investments from Alameda or FTX Ventures, as well as litigation claims.
Once the third-largest cryptocurrency exchange globally, FTX filed for bankruptcy protection in November 2022 following a crisis akin to a bank run. CEO and founder Sam Bankman-Fried resigned amid the collapse, and in March, he was sentenced to 25 years in prison for significant fraud committed at FTX.
Bankman-Fried’s downfall marked a stark contrast from previous successes, which included high-profile advertisements and endorsements from celebrities like Tom Brady, Stephen Curry, and Larry David. The company has appointed John Ray III, a seasoned bankruptcy litigator noted for his role in the aftermath of Enron’s collapse, as its new CEO.
