FTX, the cryptocurrency exchange once at the center of controversy, has announced plans to allocate $6 billion to its users as part of its restructuring strategy. This initiative aims to compensate individuals impacted by the company’s collapse that occurred in 2022. The restructuring proposal has garnered favorable reviews from a dedicated committee, which has expressed its full support for the initiative.
What Backing Has FTX Received?
The support from FTX’s creditors has been strong, paving the way for the distribution of $6.83 billion to investors and users affected by the crisis. An impressive 94% of creditors, categorized under “Dot com customer claims,” endorsed the plan, with all 66 committee members casting their votes in favor. This marks a crucial advancement toward the realization of FTX’s creditor asset distribution.
How Will FTX Compensate Its Users?
Under the proposed plan, creditors classified as “U.S. customer claims” are set to receive $60.99 million, while those in the “Dotcom easy claims” segment will be entitled to $223.59 million. Notably, these creditors are expected to obtain at least 118% of their claims in cash, despite potential losses linked to market fluctuations during the payout period.
- 89.1% of U.S. creditors will be compensated.
- 95.88% of Dotcom creditors will also receive payouts.
- Plans include full reimbursement for non-governmental creditors.
FTX’s CEO, John Ray, reaffirmed the commitment to reimburse non-government creditors, striving to address complex disputes effectively. As legal repercussions continue for former executives involved in the FTX scandal, the impending distribution signifies a turning point, potentially aiding in the recovery of losses for many users.
