Crypto Exchange FTX Submits Plans To Distribute Over $14 Billion To Creditors

Crypto exchange FTX filed an amended reorganization plan with a U.S. bankruptcy court which will allow for $14.5 billion to $16.3 billion for distribution to creditors, the company said in a statement on Tuesday.

FTX said it has anticipated the figure based on monetizing assets, most of which were investments owned by Alameda Research, a crypto-focused hedge fund controlled Sam Bankman-Fried, FTX Ventures businesses, and litigation claims.

The $14.5 billion to $16.3 billion amount for distribution includes assets under the control of the chapter 11 debtors, as well as those controlled by liquidators of FTX Bahamas Digital Markets, Bahamas Securities Commission, liquidators of FTX’s Australia unit, the United States Department of Justice (DOJ) and several private parties, the statement added.

The company said the amended plan focuses on a series of settlements reached consensually with the key stakeholders including cases that are still subject to court approval.

Earlier this year founder of the crypto trading platform Sam Bankman-Fried was sentenced to 25 years in prison by a judge for stealing $8 billion from customers.

FTX, once among the world’s top crypto exchanges, shook the sector in November 2022 by filing for bankruptcy, leaving an estimated 9 million customers and investors facing billions of dollars in losses.

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