Full Reimbursement for Customers
FTX, the bankrupt crypto exchange, has announced a plan to repay 98% of its customers at least 118% of their claims in cash. This includes selling assets and properties worth $14.5 billion to $16.3 billion.
Repayment Strategy
- Non-governmental creditors will receive full payment based on the value of their claims.
- Governmental creditors will receive interest payments of up to 9% and have their claims subordinated to primary creditors.
- A “convenience class” will be created for creditors with claims under $50,000, streamlining the payment process.
Key Settlements
- IRS claims of $24 billion will be settled with a $200 million cash payment and a $685 million subordinate claim.
- FTX has also reached agreements with the IRS and CFTC to subordinate tax claims.
- A settlement with FTX Digital Markets and BlockFi, FTX’s largest creditor, has been previously approved.
Timeline
If the plan is approved by the Bankruptcy Court, creditors can expect to receive 118% of their allowed claims within 60 days.
