Bitcoin

<p><a href="https://www.cryptopolitan.com/ftx-investors-may-drop-claims-for-sbf/">FTX cryptocurrency exchange</a>, which went bankrupt in November 2022, has revealed that a new debt settlement plan will be proposed that would let almost all the creditors of the exchange be paid off in full. On May 7, the company announced that it will try to pay 100% of the allowable bankruptcy claim amounts and interest to non-governmental creditors. This change is a departure from previous developments that used to only cover asset value at the time of bankruptcy.</p> 
<p>The plan in question is awaiting finalization and approval of a Delaware Bankruptcy Court. Given by FTX CEO and chief restructuring officer John J. Ray III, the better financial prognosis is attributed to a recent bull run of the cryptocurrency markets, in which only Bitcoin has appreciated more than 200% since the bankruptcy. FTX have successfully gathered and liquidated some of the assets with cash worth of $14.5 to $16.3 billion to be distributed among the creditors.</p> 
<h2 class="wp-block-heading" id="eligibility-and-compensation-details">Eligibility and compensation details</h2> 
<p>The 118% is still subject to the courts on the new plan to those creditors who have claims amounting less than $50,000. This is intended for a more favorable treatment of smaller creditors who, as a result of the bankruptcy, may have been disproportionately affected. The plan specifies that these payments be made within 60 days once the plan takes effect, the quick resolution of the affected parties.</p> 
<p>Among other measures, FTX has been actively recuperating funds after declaring insolvency, among other things through selling off a number of investments. One of the prominent trades was liquidating shares of $884 million in the artificial intelligence company <a href="https://www.cryptopolitan.com/amazons-investment-in-ai-startup-anthropic/">Anthropic</a>, which formed a significant part of its portfolio. These initiatives have been at the heart of FTX’s tactic to accumulate the required capital to pay off the suggested repayments.</p> 
<h2 class="wp-block-heading" id="ftx-s-repayment-plan-aims-for-financial-stability">FTX’s repayment plan aims for financial stability</h2> 
<p>The recent <a href="https://www.prnewswire.com/news-releases/ftx-files-consensus-based-plan-of-reorganization-302138948.html?tc=eml_cleartimeand" rel="nofollow noopener" target="_blank">declaration</a> also serves to assure that FTX will not re-open as an exchange for cryptocurrencies. The emphasis will rather be on reorganization and creditor claims satisfaction which is in line with the significant recovery efforts in its investment portfolio. This approach is consistent with FTX’s mission to compensate for the financial harm suffered by its creditors and to preserve its remaining assets in order to stabilize them.</p> 
<p>The proposal by FTX could be described as a major repayment effort in the history of bankrupt cryptocurrency exchange companies. If accepted, it will form a model for digital finance companies to operate willingly during the recovery period post-crisis that will be based on restitution and responsibility.</p>

FTX commits to 100% creditor payback and substantial bonuses

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