FTX Announces Updated Reorganization Plan
On May 7, 2024, the cryptocurrency exchange FTX presented an updated reorganization plan, promising to return traders’ money with interest. The plan includes paying creditors and clients between $14.5 billion and $16.3 billion, with the final amount dependent on the value of assets owned by Alameda Research, founded by Sam Bankman-Fried.
Special «Beneficiary Class» Proposed
FTX aims to establish a special «beneficiary class» for clients who have applied for assets worth up to $50,000. If approved, these clients could receive approximately 118% of their debt within two months, including a small bonus along with the refunded funds.
FTX CEO John Ray III Statement
«We are pleased to offer a bankruptcy plan that involves full repayment of debts to non-government creditors and payment of interest to them,» stated FTX CEO John Ray III. The increase in cryptocurrency value since the exchange’s bankruptcy in November 2022 has allowed FTX to sell assets at higher prices, leading to more funds being returned to traders.
Rebuilding Trust and Managing Assets
The reorganization plan is designed to help FTX recover from bankruptcy and restore investors’ trust, despite challenges associated with asset management and sales.
