The US bankruptcy judge Jon Dorsey has approved the reorganization plan for FTX, paving the way for the defunct cryptocurrency exchange to repay billions of dollars to its creditors. The decision marks a significant update in the company's efforts to wind down operations and compensate affected customers.

FTX Bankruptcy Plan Approved, Creditors Set to Receive Full Repayment

Under the approved plan, 98% of FTX creditors are slated to receive approximately 119% of their allowed claims within 60 days of the plan's effective date. The company projects that between $14.7 billion and $16.5 billion will be available for distribution. The sum includes assets recovered from various sources worldwide.

“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,” commented John J. Ray III, FTX's Chief Executive Officer and Chief Restructuring Officer.

“In preparation for this process, we are finalizing agreements to retain specialized agents to assist us in getting recoveries to customers around the world as safely and expeditiously as possible,” he further explained.

The FTX Debtors today announced that the United States Bankruptcy Court for the District of Delaware has confirmed FTX’s Plan of Reorganization. Read about it here: https://t.co/kETV0rgs0v

— FTX (@FTX_Official) October 7, 2024

The plan's approval comes less than two years after FTX's high-profile collapse in November 2022, which sent shockwaves through the cryptocurrency industry. Since then, a team of professionals has worked to rebuild FTX's financial records and recover assets globally.

US Bankruptcy Judge Dorsey, who presided over the case, praised the reorganization effort as “a model case for how to deal with a very complex Chapter 11 bankruptcy proceeding.”

The distribution process is expected to be intricate, involving creditors across more than 200 jurisdictions. While the plan promises full repayment, some customers may still feel the sting of missed opportunities. Since FTX's bankruptcy filing, cryptocurrency prices have rebounded significantly, with Bitcoin surging approximately 260%.

The FTX bankruptcy case has been closely watched by the crypto industry and financial regulators alike. It follows the criminal conviction of FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison for fraud earlier this year.

In response to the latest news, the price of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term fell by more than 4% on Monday. It still remains clearly above the psychological threshold of $60,000 though. On Tuesday, one BTC is priced at $62,430.

Sam Bankman-Fried, SEC and CFTC

Amid the ongoing efforts to repay creditors of the bankrupt FTX, the case of its former chief and founder, Sam Bankman-Fried (SBF), who is currently incarcerated with a 25-year prison sentence, continues to unfold. Last month, he formally appealed his conviction and sought a retrial. In a 102-page appeal document, SBF's legal team accused Judge Lewis Kaplan of exhibiting unfair bias during the trial.

Shapiro has stepped in as Bankman-Fried's new legal counsel, replacing trial attorneys Mark Cohen and Christian Everdell post-conviction. In their recent submission, the defense argued that Judge Kaplan had unjustly prevented Bankman-Fried from informing the jury that FTX customers might recover their funds through bankruptcy proceedings.

Meanwhile, the FTX bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term case has seen a significant development. The United States Commodities Futures Trading Commission (CFTC) agreed to a $12.7 billion settlement to resolve a 19-month lawsuit. The settlement, finalized after extensive negotiations, includes $8.7 billion in restitution and $4 billion in disgorgement. In this context, the CFTC opted not to pursue a civil monetary penalty. FTX has acknowledged its substantial potential liabilities to the CFTC due to the actions and convictions of FTX insiders, highlighting the commodities regulator as a major creditor in the Chapter 11 proceedings.

Additionally, last month the Securities and Exchange Commission (SEC) expressed concerns over FTX's proposed payment plan to creditors, particularly the use of stablecoins. The SEC filed a motion stating it does not provide an opinion on the legality of the transactions detailed in the plan under federal securities laws but reserves the right to challenge any transactions involving crypto assets.