Almost all customers of collapsed cryptocurrency exchange FTX will get their money back — and more, according to a court filing.
FTX estimates that it owes creditors around $11.2 billion, according to a reorganization plan published late Tuesday. FTX said that it has between $14.5 billion and $16.3 billion to distribute to creditors.
Customers whose claims amount to $50,000 or less will receive approximately 118% of the amount of their allowed claim, the plan says. Around 98% of creditors will receive this compensation.
The reorganization plan, which still needs to be approved by the Bankruptcy Court, will likely bring some relief to FTX customers, whose money has been locked up with the exchange since it filed for bankruptcy in November 2022.
FTX’s high-profile founder Sam Bankman-Fried was convicted of seven criminal counts in early November, including charges related to stealing billions of dollars from FTX’s customers. He received a 25-year prison sentence.
FTX managed to raise the money by selling a number of assets, including venture investments held by the exchange and other investments held by Alameda, Bankman-Fried’s crypto hedge fund.
