Sam Bankman-Fried, co-founder of the popular FTX Cryptocurrency Derivatives Exchange, made an appearance in court in New York on February 16, 2023. The court filing revealed that almost all customers of FTX will be receiving their funds back, bringing hope to those who have been anxiously waiting for updates since the exchange filed for bankruptcy protection in November 2022.
FTX has estimated that it owes creditors a total of $11.2 billion but has between $14.5 billion and $16.3 billion to distribute, allowing for the majority of customers to receive their funds. Customers with claims of $50,000 or less will receive approximately 118% of their allowed claim, providing compensation to around 98% of creditors.
This news comes as a relief to FTX customers who have been facing uncertainty and financial loss due to the exchange’s bankruptcy filing. The reorganization plan proposed by FTX still needs approval from the bankruptcy court, but customers are hopeful that they will soon have access to their funds once again.
The announcement of funds being returned to customers marks a positive development in the ongoing saga of FTX’s bankruptcy proceedings. With the majority of creditors expected to receive compensation and the approval of the reorganization plan pending, FTX customers can finally see a light at the end of the tunnel.
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