NASSAU, BAHAMAS- FTX Trading Ltd. has announced that the United States Bankruptcy Court for the District of Delaware has confirmed its Plan of Reorganization, marking a significant milestone less than two years after the company’s historic bankruptcy filing.
Under the terms of the Plan, 98 percent of FTX’s creditors by number will receive approximately 119 percent of their allowed claims within 60 days of the Plan’s effective date, subject to know-your-customer and other distribution requirements. FTX estimates that the total value of property collected, converted to cash, and available for distribution will range between $14.7 billion and $16.5 billion. This figure includes assets controlled by the Chapter 11 Debtors, as well as those managed by the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Administrators of FTX Australia, the United States Department of Justice, and numerous private parties involved in recovery efforts. The Debtors will announce the Plan’s effective date and the estimated first distribution date in due course.
John Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX, stated: “The Court’s confirmation of our Plan is a significant milestone on our pathway to distributing cash to customers and creditors. This achievement is only possible because of the expertise and tireless efforts of the professional team supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from the ground up and marshaling assets globally. It also reflects the strong collaboration we have had with governments and agencies around the world that share our goal of addressing the wrongdoings of FTX insiders.”
Ray added: “Looking ahead, we are on track to return 100 percent of bankruptcy claim amounts, plus interest, to non-governmental creditors, through what will be the largest and most complex bankruptcy estate asset distribution in history. The estate is finalizing arrangements to distribute assets to creditors across more than 200 jurisdictions worldwide. In preparation for this process, we are completing agreements to retain specialized agents who will assist in ensuring that recoveries are delivered to customers around the globe as safely and efficiently as possible. I want to thank all customers and creditors of FTX for their patience throughout this process.”
FTX was headquartered in The Bahamas before its collapse. Its co-founder and CEO, Sam Bankman-Fried, was arrested and extradited from The Bahamas in December 2022. Bankman-Fried has since been found guilty of defrauding customers and lenders and was sentenced to 25 years in prison.
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