United States Bankruptcy Judge John Dorsey has approved a plan for defunct cryptocurrency exchange FTX to wind down its operations as part of efforts to repay users.
In an Oct. 7 hearing in the US Bankruptcy Court for the District of Delaware, Judge Dorsey approved FTX’s liquidation plan. The plan will allow the exchange’s debtors to repay 98% of users roughly 119% of their claimed account value. The court decision came roughly two years after FTX first filed for bankruptcy in November 2022, a case that resulted in criminal indictments and civil lawsuits.
“The Court’s confirmation of our Plan is a significant milestone on our pathway to distributing cash to customers and creditors,” said FTX CEO and chief restructuring officer John J. Ray III, adding:
“Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history.”
This is a developing story, and further information will be added as it becomes available.
