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FTX’s creditors, including thousands of Italians, are perhaps about to see some light at the end of the tunnel. The exchange presented a new plan to repay creditors in a detailed document submitted to the District of Delaware. According to what is written, the plan could allow almost all creditors (98%) to get back the funds stranded in the platform that failed in November 2022. The platform estimates that it owes creditors around 11.2 billion dollars and has between 14 .5 and the 16.3 billion dollars that can be distributed. According to the document, customers who need to get back an amount of up to 50 thousand dollars will receive approximately 118% of their money thanks to the cumulative annual interest of 9%; it is estimated that around 98% of creditors will recover their money.
Those who responded to the refund request will be able to get their money back as part of the compensation process. Among these there are, as mentioned, thousands of Italian customers who, before the surprise failure of the platform (dated November 2022), had become the second most used cryptocurrency exchange in the world. The crack was a blow out of the blue and from day to night it was no longer possible to withdraw one’s funds.
Ftx’s assets are the result of almost two years of fund recovery activities through the liquidation of collateral (and non-collateral) assets of the company. The reorganization plan still needs to be approved by the bankruptcy court. Ftx will finance itself by selling a series of assets, including investments from the Alameda fund, owned by founder Sam Bankman-Fried.
Furthermore, the plan includes agreements with the Internal Revenue Service (IRS) and the Commodity Futures Trading Commission to subordinate their claims and allocate any recoveries to a special fund for further compensation to customers and creditors. An additional agreement with the US Department of Justice would allow the distribution of more than $1.2 billion without additional administrative costs. The collaboration of various key players in plan development and recovery efforts is also recognized.
John J. Ray III, CEO and chief restructuring officer of FTX, said: «We are pleased to be able to propose a bankruptcy plan that provides for the return of 100% of the bankruptcy claims amounts plus interest to non-government creditors. On behalf of the independent board of directors of Ftx, I would like to express our deepest appreciation to the numerous government agencies, official liquidators, non-US client committees, class action complainants, BlockFi and all of their professionals for their commitment in the development of the plan and the successes achieved. Finally, I would like to thank all FTX customers and creditors for their patience during this process.”
