The court has approved FTX's compensation plan which aims to return over $16 billion to creditors after the crypto exchange's collapse. With 98% of creditors supporting this move, they are set to receive up to 118% of their requested assets within 60 days after the plan's enactment.
The compensation amount is expected to range between $14.7 billion and $16.5 billion, surpassing historical bankruptcy cases like Mt. Gox. This has been touted as bullish for the market by some investors, as the payouts will be in cash, potentially boosting cryptocurrency market activity.
Despite the optimistic outlook, some criticisms linger. Concerns have been raised regarding the methodology for asset value, with calculations based on market prices during the collapse rather than current valuations. This might mean returns could be limited to only 20% to 25% for some users.
Notably, those with claims below $50,000 are likely to be compensated by year's end, while larger claims could face delays until mid-next year. FTX's reorganization plan, which was supported by 94% of its creditors, represents a crucial step in resolving its financial commitments to affected users and creditors.
