FTX Reorganization Plan Secures 94.5% Creditor Approval for $6.8 Billion Claims

Approximately 94.48% of FTX.com clients have voted in favor of the platform’s reorganization plan. Hearings for its approval are scheduled for October 7, reports The Block.

The group of FTX.com clients has claims on assets valued at $6.83 billion.

Roughly 89.1% of FTX.US users and about 95.88% of creditors in the “related to FTX.com services” category voted “yes.” Their obligations amount to $60.99 million and $223.6 million, respectively.

About 98% of creditors will receive at least 118% of the claim value in cash. Claims were assessed based on digital asset prices at the time of the bankruptcy announcement.

On September 28, one participant in the process, Sunil Kavuri, estimated that affected FTX users will receive between 10% and 25% of their deposited cryptocurrencies.

FTX is transferring 18% of DOJ forfeiture funds up to $230m to FTX equity holders (Plan supplement)

FTX crypto holders are getting 10% to 25% of their crypto back pic.twitter.com/3f6BePpoNU

— Sunil (FTX Creditor Champion) (@sunil_trades) September 28, 2024

Preferred shareholders can expect 100% asset reimbursement.

(1/3) The FTX Debtors are providing an update on the proposed settlement with the preferred shareholders. FTX will be returning 100% of the assets under FTX’s control to creditors in the Ch. 11 plan. The DOJ is in control of the distribution of assets forfeited through the…

— FTX (@FTX_Official) September 30, 2024

According to the guidance, the mentioned group is considered victims of a fraudulent scheme by Sam Bankman-Fried and the former management of the platform, alongside its creditors.

FTX noted that the claims of clients and preferred shareholders are competing. Company specialists and representatives from the U.S. Department of Justice must find a compromise solution for all parties involved.

The exchange proposes using a centralized distribution process to expedite payments and avoid “excessive costs.”

In late August, FTX announced overwhelming creditor support for the updated reorganization plan.

In September, a wallet associated with the exchange and Alameda unstaked 177,693 SOL ($23.75 million) for subsequent sale on CEX.