The restructuring team of the bankrupt cryptocurrency exchange FTX has recently proposed a repayment plan, which has been approved by an overwhelming vote of creditors. The court confirmation hearing of the repayment plan will be held on the 7th. All creditors will pay close attention to this hearing. Yes, if the plan is approved by the court, most creditors are expected to start receiving compensation before the end of 2024. (Preliminary summary: FTX sold 22.3 million Worldcoins at a discount this week, and WLD Worldcoin fell below US$1.5) (Background supplement: FTX shareholders "first received US$230 million." Creditors denounced injustice, liquidation team: both parties are victims...) The restructuring team of the bankrupt cryptocurrency exchange FTX announced in August that creditors had overwhelmingly voted to approve its repayment plan. Before the hearing, the final voting results will be submitted to the U.S. Bankruptcy Court of Delaware. After the plan is approved by the court, the repayment process is expected to start within 60 days at the earliest. Now, the confirmation hearing of the FTX repayment plan is about to begin. Judge John T. Dorsey of the U.S. Bankruptcy Court in Delaware will decide whether to approve the plan. If approved, small creditors with claims less than $50,000 will It is expected to start receiving compensation before the end of 2024. Creditors with larger claims may have to wait until the first or second quarter of 2025 to receive compensation. How much compensation can creditors receive? Once the sale of all assets is complete, FTX estimates it will have as much as $14.5 billion to $16.3 billion in cash available for distribution, according to a reorganization plan it filed with Delaware Bankruptcy Court in May. It owes customers and Other non-governmental creditors are approximately US$11.2 billion. Depending on the type of creditor's claim, some creditors can obtain 142% of the loss compensation, and the vast majority of customers (creditors with holdings of less than 50,000 US dollars) can obtain about 118% of the loss compensation. These 98% of creditors will be able to obtain compensation under the plan. After being approved by the court, 118% of the damages were compensated within 60 days. However, it should be noted that the loss compensation is calculated based on the USD price of cryptocurrency on the day FTX exercised Chapter 11 of the Bankruptcy Code on November 11, 2022, so unless the assets placed by the user on FTX are stable coins, in fact Still a big loss. For example, when FTX filed for bankruptcy protection, the price of Bitcoin was only about US$16,000, but the current price of Bitcoin is close to US$64,000. This means that if the creditor held a Bitcoin in FTX at that time, he might only get back 16,000. dollars, only a quarter of the current price. Creditors' heavy losses caused dissatisfaction. Therefore, when FTX creditor representative Sunil Kavuri tweeted at the end of last month to disclose the latest revised bankruptcy document, stating that creditors will actually only receive "10% to 25% of the value of its cryptocurrency," many people were upset. Creditors are disappointed, even dissatisfied. Sunil Kavuri and his followers are not the only opponents of FTX's repayment plan. In August 2024, a U.S. trustee responsible for overseeing the bankruptcy proceedings also questioned the FTX restructuring plan, believing that the plan was a failure of the FTX restructuring team. Administrators and Representatives Provide Excessive Legal Protection. In addition, according to the current plan of the restructuring team, FTX will repay creditors in cash or US dollar-linked stablecoins. However, the U.S. Securities and Exchange Commission (SEC) has previously stated that if FTX chooses to use stablecoins to repay customers, it may oppose the FTX restructuring plan. , in any case, further answers are expected after the hearing on October 7. Controversies over repayment plans are frequent. In fact, recent controversies over repayment plans have continued to surface. According to an agreement disclosed by FTX in late September, FTX will receive 18% of the proceeds from the government’s forfeiture actions, equivalent to US$230 million. , giving priority to preferred shareholders, a move that once again aroused strong dissatisfaction among creditors. Many creditors denounced this move as unfair and even "criminal" considering the huge financial losses they suffered, because in bankruptcy proceedings, creditors usually receive compensation before shareholders, and when they on August 16 The agreement was not known to exist when the repayment plan was voted overwhelmingly ahead of the voting deadline. However, in response to this dispute, the FTX restructuring team recently stated that the U.S. Department of Justice will be responsible for mediating the claims of both parties, and emphasized that preferred shareholders are also regarded as victims of FTX’s fraudulent activities and have the same status as creditors. Extended reading: FTX shareholders "received US$230 million first", creditors denounced injustice, liquidation team: both sides are victims... Related reports FTX rumored to start repayments on 9/30 "FTT skyrocketed 80%", fact check: the plan was not approved The court approved that FTX will be launched as early as the end of the year. Creditors can only get back 10 to 25% of crypto assets: Bitcoin is getting more and more sad as it rises.. Fastest Q4 repayment of FTX (aftermath of bankruptcy) Crypto-friendly bank Silvergate’s parent company filed for bankruptcy. "FTX repayment will be decided tonight! The court hearing will attract global attention and decide whether to compensate before the end of the year." This article was first published in BlockTempo (Dong District) Dongqi-the most influential blockchain news media).