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In the ongoing downturn in the cryptocurrency market, the top cryptocurrencies like Bitcoin, Ethereum, Solana price, and others experienced massive price drops. Amid this the cryptocurrency exchange FTX, a reorganization plan filed in court on Tuesday promises account holders a payout exceeding 100% of their official claims.&nbsp; FTX set to return money to the account holders&nbsp; 
FTX, which collapsed in November 2022 amidst a scandal involving founder Sam Bankman-Fried, has gathered a massive $15 billion for creditor reimbursement. This sum, primarily sourced from the sale of <a href="https://news.todayq.com/ftx-and-alameda-14-4-mln-eth-sell-off-whats-happening/" rel="noopener noreferrer nofollow">venture capital</a> investments, notably surpasses the anticipated recovery amounts.
Under the proposed plan, 98% of creditors with claims totaling $50,000 or less will receive a remarkable 118 cents on the dollar. Even the remaining creditors are assured of at least 100 cents on the dollar. John Ray III, who assumed leadership post-bankruptcy, expressed satisfaction with the proposal, highlighting the intent to return the full amounts owed plus interest to non-governmental creditors.
The collapse of FTX, once a prominent player in the cryptocurrency landscape, sent shockwaves through the industry and resulted in Bankman-Fried’s conviction on fraud charges, leading to a 25-year federal prison sentence as reported by Todayq News. Ray did not mince words when describing the state of affairs he inherited, characterizing it as a “dumpster fire” and a “crime scene,” alleging misappropriation of customer funds for personal use and trading. Recovery pool and liquidation of investments 
Despite hopes pinned on a crypto market rally, recovery efforts have been hampered by the disappearance of approximately 99% of the cryptocurrencies held by the exchange at the time of bankruptcy. Consequently, the bulk of the reimbursement pool stems from the liquidation of FTX’s investment portfolio. Notably, the sale of its stake in AI startup Anthropic for nearly $900 million this year significantly bolstered available funds.
The reorganization plan has garnered unanimous support from FTX’s major creditor groups and includes a $200 million cash settlement for a $24 billion claim filed by the Internal Revenue Service. Pending court approval, claimants will vote on the terms before final confirmation in a subsequent hearing. Notably, the proposed recoveries are based on cryptocurrency prices at the time of the bankruptcy filing, during a period of significant market downturn.

FTX account holders set to cash in big with over 100% payout

Todayq News

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