Delaware Judge Approves FTX Estate’s Bankruptcy Plan
Summary
A U.S. court approved FTX's bankruptcy plan, allowing most customers to receive cash repayments averaging 118% of their 2022 losses, with some potentially receiving up to 140%. The plan was supported by 96% of voting creditors by headcount and 98% by amount. Judge John T. Dorsey overruled objections regarding repayment methods and the valuation of FTT tokens, which were deemed worthless. The estate's ability to repay customers stems from liquidating investments, including an 8% stake in AI startup Anthropic, and rising crypto prices since FTX's collapse. In-kind crypto distributions are not feasible, but stablecoin distributions are being considered, despite SEC objections.
