By mid-2024, customers of the cryptocurrency exchanges FTX and FTX.US could receive a payout of nearly $9 billion. This is the result of an agreement reached between FTX debtors and their creditors.
Key Milestone Achieved in the Settlement
After intensive negotiations with the committee of creditors, the committee of non-US customers, and representatives of a class-action lawsuit concerning disputes over customer assets, FTX announced the achievement of a pivotal step in their case. On October 16th, FTX debtors notified the US bankruptcy court in Delaware of their intentions and plan to file an official request for approval by December 16th.
How the Settlement Will Be Distributed
According to the revised plan, it is expected that FTX.com and FTX.US customers will receive 90% of the total assets available for distribution. This deficit is estimated at $8.9 billion for FTX.com and $166 million for FTX.US. Upon court approval, this amount should be disbursed by the second quarter of 2024.
FTX's CEO and Head of Restructuring, John J. Ray III, expressed his satisfaction with the agreement, emphasizing the success of such a settlement given a situation that could have meant almost total loss for the customers.
Asset Distribution and Customer Payouts
FTX's assets will be divided into three groups. However, payouts pertain only to the first two groups. It's anticipated that customers will not share the same degree of losses, with FTX.com likely recording a higher percentage of losses.
Terms for Large Withdrawals
Observers noted that customers who withdrew more than $250,000 within nine days after the crash will have their claim reduced by 15%. However, these terms won't affect claims less than $250,000.
Excluding Certain Individuals from the Settlement
FTX may decide to exclude from the settlement individuals who had knowledge or were involved in unethical conduct concerning the company's and customers' financial assets.
Case of the Former CEO
Sam Bankman-Fried, the former CEO of FTX, faces a court trial concerning his role in the FTX crash in November of the previous year.
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