The collapsed crypto exchange FTX has disclosed an amended reorganisation plan, projecting a $14.5 billion to $16.3 billion war chest to compensate creditors and customers.
The announcement, filed on Tuesday in a U.S. bankruptcy court, represents a glimmer of hope for those affected by the platform’s implosion.
According to the filing, FTX anticipates generating these substantial funds by monetising assets, primarily investments owned by Alameda Research, the crypto-focused hedge fund controlled by convicted Sam Bankman-Fried. Additionally, proceeds from FTX Ventures businesses and potential legal claims contribute to the projected sum.
Notably, the amount earmarked for distribution encompasses assets under the control of the Chapter 11 debtors, as well as those held by liquidators of FTX’s Bahamas and Australian units, the U.S. Department of Justice, and various private parties.
The amended plan introduces a “convenience class” for creditors with claims of $50,000 or lower. If approved by the court, the majority of these creditors could receive approximately 118% of their claim amounts within two months.
As of February, the exchange held $6.4 billion in cash reserves.
FTX’s founder Sam Bankman-Fried was sentenced to 25 years in prison earlier this year. A judge found him guilty of stealing $8 billion from customers.
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