Clients of the FTX exchange, which went bankrupt last fall, will receive compensation for 90% of their assets by mid-2024. This will be possible if the court approves the agreement between creditors and debtors of FTX.
After lengthy discussions between representatives of the depositors and the debtors of FTX, an agreement was reached in the Chapter 11 case. The creditors were represented by a committee of non-U.S. clients and plaintiffs in the client property class actions.
The FTX Debtors filed a Notice of Settlement with the Delaware Bankruptcy Court on October 16 and now have until December 16 to file a formal motion for court approval.
Under the amended settlement plan, FTX.com and FTX US clients will receive a combined 90% of the assets.
Loading...
The claims amount to approximately $8.9 billion for FTX.com and $166 million for FTX US. If the agreement is approved by the court, these funds will be paid by the end of the second quarter of 2024.
FTX's Chief Restructuring Officer, John. J. Ray III, said he was pleased with the terms of the agreement. "In the most complex financial disaster I have ever seen, the debtors and their creditors were able to come together to reach an agreement in a situation that could have resulted in almost a total loss for clients."
Read also: Binance suspended registration of new users in the UK.