A US bankruptcy court has approved FTX's liquidation plan, enabling the crypto exchange to repay customers using $16 billion in recovered assets. Judge John Dorsey made this ruling during a court hearing in Wilmington, Delaware. The plan includes settlements with FTX customers, creditors, US government agencies, and international liquidators.
This approved plan prioritizes customer repayments before other claims, allowing FTX to use its resources more effectively. Customers will receive at least 118% of their account values from November 2022, when FTX filed for bankruptcy. This decision is regarded by FTX as a success for creditors, citing effective asset recovery.
Customer reactions are mixed. Despite the repayment plan, many former users feel deprived of recent crypto market rebounds since FTX's collapse. Some customers demand higher repayments, arguing recent crypto value increases. FTX maintains it cannot return original assets as they were misappropriated by founder Sam Bankman-Fried.
Bankman-Fried was sentenced to 25 years for defrauding customers but has appealed his conviction, adding complexity to FTX's aftermath. Amid the repayment plan announcement, FTX's native token, FTT, surged 20% to $3. Trading volume increased by 176%, though it remains 97% below its all-time high.
