Court Approves FTX Reorganization Plan

FTX's restructuring plan aims to repay between $14.7 billion and $16.5 billion to creditors from recovered assets.

Azcnews Court Approves Ftx Reorganization Plan

FTX reached a major milestone in its bankruptcy proceedings as the United States Bankruptcy Court for the District of Delaware formally approved the company’s restructuring plan.

This comes nearly two years after the cryptocurrency exchange’s historic collapse in November 2022.

FTX Bankruptcy Restructuring Plan Approved

The plan, which has received strong support from creditors, is expected to repay an average of 119% of the value of claims, with some creditors receiving as much as 140% in cash. Approximately 98% of FTX’s creditors, by volume, will receive their repayments within 60 days of the plan going into effect.

According to the official announcement, FTX estimates that the total amount of assets recovered will be between $14.7 billion and $16.5 billion, thanks to assets recovered from various entities, including the U.S. Department of Justice and international regulators.

Ftx Receives U.s. Bankruptcy Court Confirmation Of Its Plan Of Reorganization
Ftx Receives U.s. Bankruptcy Court Confirmation Of Its Plan Of Reorganization

Commenting on the progress, John J. Ray III, CEO and Chief Restructuring Officer of FTX, said:

“Today’s achievement was only possible due to the experience and tireless efforts of the team of experts supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from scratch and collecting assets from around the world. It also demonstrates the strong collaboration we have had with governments and agencies around the world who share our goal of minimizing the wrongdoings of FTX’s insiders.”

Ray III, who took over after former CEO Sam Bankman-Fried, also said that FTX’s assets are on track to repay 100% of the bankruptcy claims, with interest, to non-government creditors. He called it the “largest and most complex” bankruptcy distribution in history.

He added that FTX’s assets are in the process of finalizing agreements to distribute funds to creditors in more than 200 jurisdictions globally.

To ensure this goes smoothly, dedicated agents have been hired to ensure the recovery of assets is carried out safely and in a timely manner for customers around the world.

Events following FTX’s collapse in 2022

Sam Bankman Fried
Sam Bankman Fried

FTX filed for bankruptcy in late 2022 after the exchange collapsed. In November 2023, Sam Bankman-Fried was convicted of seven criminal charges, including wire fraud and conspiracy, and sentenced to nearly 25 years in prison. In May, the company’s co-CEO, Ryan Salame, was sentenced to 90 months in prison. Most recently, Caroline Ellison, CEO of FTX-affiliated company Alameda, was sentenced to two years in prison for her role in the company’s collapse. Two former FTX executives, Gary Wang and Nishad Singh, are awaiting sentencing. Singh is scheduled to be sentenced later this month, while Wang will be sentenced in late November.

Love

0.0/5

Love

Latest

Strong Buying Momentum Pushes Bnb To New All Time High

News | Altcoin | Editor Choice

Strong Buying Momentum Pushes BNB to New All-Time High

A massive $96 million inflow into BNB has reignited market optimism, as analysts believe Binance’s native token is entering a strong accumulation phase before potentially breaking to new highs.

The Whale Who Made $192 Million Shorting The Crypto Crash Is At It Again

News | Altcoin | Editor Choice

The Whale Who Made $192 Million Shorting the Crypto Crash Is at It Again

A notorious whale on Hyperliquid — who previously made $192 million by perfectly timing last week’s crash — is back with another massive short, sparking fears that Bitcoin could be on the verge of another steep decline.

Binance Spends $283 Million To Clean Up Weekend Market Chaos

News | Editor Choice | Policy & Regulations

Binance Spends $283 Million to Clean Up Weekend Market Chaos

The world’s largest cryptocurrency exchange, Binance, has announced a total compensation of $283 million for users affected by collateral asset depegging during the sharp market crash on October 10.

Bitcoin And Ethereum Rebound After The Largest Single Day Wipeout In Crypto History

News | Bitcoin | Editor Choice

Bitcoin and Ethereum Rebound After “The Largest Single-Day Wipeout in Crypto History”

The cryptocurrency market is staging a recovery after a tariff shock triggered one of the biggest liquidation events in its history.

Whales Dump Xrp As $50 Million Floods Out Daily

News | Altcoin | Editor Choice

Whales Dump XRP as $50 Million Floods Out Daily

The relentless sell-off of XRP by crypto whales is shaking the market, with $50 million worth of tokens dumped daily, dragging prices lower and sparking fears of a deeper bearish cycle ahead.

Screenshot 2025 09 10 100533