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 companyâs 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 FTXâs 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 âDot com customer claims,â endorsed the plan, with all 66 committee members casting their votes in favor. This marks a crucial advancement toward the realization of FTXâs creditor asset distribution.
How Will FTX Compensate Its Users?
Under the proposed plan, creditors classified as âU.S. customer claimsâ are set to receive $60.99 million, while those in the âDotcom easy claimsâ 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.
FTXâs 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.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
