US Bankruptcy Judge Approves FTX’s Reorganization Plan
United States Bankruptcy Judge John Dorsey yesterday approved a plan for defunct cryptocurrency exchange FTX to wind down its operations and repay users.
The plan will allow FTX to repay 98% of user’s claimed account value.
The court’s decision was made after two years since FTX first filed for bankruptcy, which also resulted in criminal indictments and civil lawsuits.
According to FTX CEO and chief restructuring officer John J. Ray III, the court’s confirmation of their plan is a significant milestone in their efforts to distribute cash to customers and creditors.
Ray also stated that they are prepared to return 100% of bankruptcy claim amounts plus interest, making it the largest and most complex bankruptcy estate asset distribution in history.
