Some customers of failed cryptocurrency exchange FTX could receive the full amount of money they lost if a court approves the company’s bankruptcy plan.
However, the gains from holding Bitcoin and other digital assets over the last two years have been You won’t get it.
according to press release 98% of FTX creditors, including retail investors (with less than $50,000 in holdings with the company) lost their funds within 60 days of the restructuring plan taking effect, according to a report filed Tuesday by FTX, which is undergoing restructuring. will be received in cash. . The plan still needs to be approved by the court and creditors.
“We are pleased to be in a position to propose a Chapter 11 plan that considers the return of 100% of the bankruptcy debt and interest to non-governmental creditors,” said John J. Ray III said. FTX serves as Chief Restructuring Officer.
This plan was made possible in large part because FTX and its sister company Alameda Research held many of the other assets that the restructuring team sold. These included a stake in Anthropic, an Amazon-backed artificial intelligence startup currently valued at about $20 billion. FTX announced earlier this year that it had sold $900 million worth of its stock.
However, some claimants object to crypto assets being valued at November 2022 prices. Since then, Bitcoin has risen over 250%.
Attorneys representing some of the FTX bankruptcy plaintiffs did not respond to requests for comment.
FTX acknowledged that some creditors may think that what they get back in bankruptcy is not worth enough.
However, at the time of the collapse, FTX “held only 0.1% of Bitcoin and believed only 1.2% of Ethereum customers owned it,” the release states.
As such, FTX, which is referred to as the debtor in the bankruptcy case, “was unable to benefit from the appreciation in value of these lost tokens during the Chapter 11 litigation,” the press release said.
“Instead, debtors have had to turn to other sources of recoverable value to repay creditors.”
In March, former FTX chief Sam Bankman Fried was sentenced to 25 years in prison for masterminding the fraud that led to the exchange’s collapse.
