FTX, once a giant in the crypto exchange world, has cleared a major hurdle in its bankruptcy proceedings. On Monday, a US bankruptcy court approved its plan to repay customers using up to $16.5 billion in recovered assets. The approval signals a win for the company’s efforts to right the wrongs that caused its collapse.
US Bankruptcy Judge John Dorsey, presiding over the case, called FTX’s resolution “a model case” for handling such complex Chapter 11 filings. The approval offers hope for FTX customers, many of whom have been waiting since 2022 to recover their funds.
FTX APPROVED TO REPAY CUSTOMERS AMID BATTLE FOR $1 BILLION SEIZED ASSETS
– A U.S. bankruptcy judge approved a plan for FTX to repay customers over $12.6 billion after their digital assets were locked on the platform following its collapse in November 2022.
– FTX is in talks to… pic.twitter.com/TWjNV1BhAP
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The Payback Schedule: A Complicated Package For Clients
FTX would pay approximately 98% of account holders with less than $50,000 on the platform through this settlement. The plan will start the payout after 60 days of activation. Although it sounds sweet for those customers, not all of them are satisfied. Because the values are based on the cryptocurrency prices from November 2022 and also happened to be the month that FTX collapsed, they feel they’re getting the raw end of the deal.
As of today, the market cap of cryptocurrencies stood at $2.12 trillion. Chart: TradingView.com
Bitcoin was only valued about $16,000 at the time. In the present day, the value of bitcoin has skyrocketed above $63,000. Some con
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Author: Christian Encila
