Nearly all of FTX ’s former customers will get back almost 100 % of the money they lost at the time of the cryptocurrency central ’s collapse — if not more .
FTX enunciate in a statementTuesday that it expects 98 % of its creditors to receive some 118 % of the amount of their allowed claims . Others will get 100 % of their claims plus billions in interest as compensation for the time value of their investment .
The companionship forecasts that the total economic value of the assets , converted to cash and made available for distribution , will be between $ 14.5 and $ 16.3 billion . The update shakeup architectural plan , as outlined in filings in Delaware bankruptcy court submitted Tuesday , will be fund from immediate payment that the company has on hand , available NFTs , confidential information - down cash take , and any remaining assets .
FTX co-founder and former CEO Sam Bankman-Fried was sentenced to 25 years in prison for his role in the exchange’s collapse.Photo: Michael M. Santiago (Getty Images)
Shareholders ’ claim will be forecast based on their property as of November 2022 , when the crypto exchangefiled for Chapter 11 bankruptcy . The announcement was likely welcomed by former customer , whose money was locked up amid court proceeding . At the time of the prostration , it was conceive that billions of dollars Charles Frederick Worth of client repository in FTX would likely never be recovered .
Sam Bankman - Fried , who co - founded the crypto exchange in 2019 and became known as the “ Crypto King , ” wasconvicted of fraudlast year in FTX ’s stunningcollapse . He wassentenced in March to 25 eld in prison house .
The new shake-up design is pending finalization and approval from the bankruptcy court . Customers should ask to start receiving their money within 60 day of the programme ’s effective escort , which will be lay by the tourist court .
“ We are pleased to be in a view to propose a chapter 11 program that contemplates the return of 100 % of bankruptcy claim amounts plus interest for non - governmental creditor , ” say John J. Ray III , CEO and chief restructuring police officer of FTX . He also thank FTX ’s customers and creditors for their forbearance throughout the 17 - month - long summons .
This article in the beginning appeared onQuartz .
BankruptcyCorporate crimeCryptocurrencyJoseph BankmanSam Bankman - fry
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