<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0MOjQN_0vyVpBql00" alt="https://img.particlenews.com/image.php?url=0MOjQN_0vyVpBql00" width="768" height="460" ></figure>Most of <a href="http://www.ftx.com/">FTX’s</a> creditors will profit from their investments in the failed cryptocurrency exchange.That’s according to a <a href="https://www.prnewswire.com/news-releases/ftx-receives-us-bankruptcy-court-confirmation-of-its-plan-of-reorganization-302269152.html">bankruptcy agreement</a> approved Monday (Oct. 7) by a federal court, giving 98% of FTX’s creditors approximately 119% of their claim.“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,” FTX CEO John Ray said in a news release.He added that FTX is at work on finalizing plans to “make distributions to creditors across more than 200 jurisdictions around the world.”Ray became chief executive after FTX <a href="https://www.pymnts.com/cryptocurrency/2022/sam-bankman-fried-ftx-and-the-demise-of-the-cool-kids/">declared bankruptcy</a> in November 2022, a collapse that rocked the crypto world and sent at least three former executives to prison. At the time of his takeover, Ray — who also helped with Enron’s post-bankruptcy recovery — blasted FTX’s previous management for a “<a href="https://www.pymnts.com/cryptocurrency/2022/sbfs-big-dumb-game-leaves-worse-than-enron-cleanup-for-ceo/">complete failure of corporate controls.”</a>Since then, he and his team have worked at recovering the company’s assets. FTX says it has amassed $14.7 billion to $16.5 billion worth of property for distribution. The company has said it owes creditors around $11.2 billion.The bankruptcy plan approved in court gives credits 119% of their claims as of November of 2022. The price of bitcoin <a href="https://www.pymnts.com/cryptocurrency/2024/ftx-amasses-4-4-billion-stockpile-as-customers-await-repayment/">has skyrocketed</a> since then, which led many creditors to argue they weren’t being given a fair price for their claims.Meanwhile, the criminal proceedings tied to FTX’s implosion continue. Last month, Caroline Ellison, the former executive who played a role in the company’s downfall but also served as <a href="https://www.pymnts.com/legal/2023/from-star-crossed-lovers-to-star-witness-caroline-ellison-nails-bankman-fried/">star witness</a> against FTX founder Sam Bankman-Fried, was sentenced to two years in prison.That was a harsher sentence than the three years of supervised release, with no prison time, recommended by federal probation officials.But Judge Lewis Kaplan — while praising Ellison’s cooperation with prosecutors — said a custodial sentence was necessary to deter others from committing fraud, calling the no-jail-time recommendation a “literal <a href="https://www.pymnts.com/legal/2024/caroline-ellison-faces-sentencing-for-role-in-ftx-collapse/">get-out-of-jail-free card</a> I can’t agree to.”Bankman-Fried — serving 25 years for fraud and conspiracy — has recently <a href="https://www.pymnts.com/cryptocurrency/2024/bankman-fried-says-rush-to-judgment-prevented-fair-trial/">asked for a new trial</a>, arguing that Kaplan had hamstrung his defense. In his filing, Bankman-Fried contends that “everyone rushed to judgment” after FTX’s implosion and that a “sentence first-verdict afterwards tsunami” prevented a fair trial.“When the government introduces evidence, defendants have the right to rebut that evidence and present their side of the story,” the filing said. “But none of that happened here.”</div></body>

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FTX Creditors Will Earn 119% Profit in Bankruptcy Settlement

Most of FTX’s creditors will profit from their investments in the failed cryptocurrency exchange. That’s according to a bankruptcy agreement approved Monday (Oct. 7) by a federal court, giving 98% of FTX’s creditors approximately 119% of their claim. “Looking ahead, we are poised to return 100% of...

FTX Creditors Will Earn 119% Profit in Bankruptcy Settlement

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