FTX Bankruptcy Plan Approved by US Judge After 2 Years, Creditors To Receive USD 1.19 for Every Dollar

A Delaware judge approved the FTX bankruptcy plan after two years and cleared a path for USD 16 billion in repayment to the creditors.

FTX Cryptocurrency Exchange Logo (Photo Credits: Wikimedia Commons)

FTX Trading Ltd. was the third-largest cryptocurrency exchange in the world that filed for bankruptcy protection in November 2022. The reason for the FTX bankruptcy was the mismanagement of funds—lack of having liquidity and large volumes of withdrawals. After nearly two years, a Delaware judge approved FTX's bankruptcy plan and cleared the path to USD 16 billion in repayment. The company reportedly collected between USD 14.7 billion and USD 16.5 billion worth of property and will distribute it to its creditors. As per the judge's ruling, 98% of the FTX credits will be given 119% of the amount on their allowed sum. Binance Founder Changpeng Zhao Getting Released After Serving 119 Days in Prison, Unlikely To Manage Crypto Exchange.

US Judge Approved FTX Bankruptcy Plan of USD for Repayment to Creditors

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