Ethereum

2024

<p>In the cryptocurrency saga, the tumultuous history of FTX, once a flourishing cryptocurrency exchange, is witnessing a new twist. Plagued by financial difficulties and forced to declare bankruptcy in November 2022, FTX has just presented a new reorganization plan. According to this plan, 98% of its creditors could recover 118% of their cash claims, stirring both hope and skepticism in the crypto world.</p>
<h2 id="h-ftx-a-renaissance-under-high-pressure">FTX: A Renaissance Under High Pressure!</h2>
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     <p lang="en" dir="ltr">A new, amended reorganization plan from the FTX estate would see 98% of FTX creditors get 118% of their money back – in cash. <a href="https://twitter.com/cheyenneligon?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@cheyenneligon</a> reports.<a href="https://t.co/YDS7GlIpKa" rel="noopener noreferrer nofollow">https://t.co/YDS7GlIpKa</a></p>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1788039317710913924?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 8, 2024</a>
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<p>The cryptocurrency exchange FTX, amidst turmoil following <a href="https://www.cointribune.com/en/proces-crypto-une-faillite-de-10-milliards-quon-est-pas-pres-doublier-2/" target="_blank" rel="noopener noreferrer nofollow">its bankruptcy</a>, is proposing an audacious reorganization plan. According to <a href="https://www.coindesk.com/policy/2024/05/08/nearly-all-ftx-creditors-will-get-118-of-their-funds-back-in-cash-estate-says-in-new-plan/?utm_source=twitter&amp;utm_campaign=coindesk_main&amp;utm_content=editorial&amp;utm_term=organic&amp;utm_medium=social" target="_blank" rel="noopener noreferrer nofollow">this new plan</a>, 98% of its creditors could recover 118% of their cash claims within 60 days following court approval, as revealed by new documents filed on Tuesday evening.</p>
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<p>This plan also stipulates that other non-governmental creditors would recover 100% of their claims, with an additional 9% interest to compensate for “<em>the time value of their investments</em>.” This proposal remains subject to the approval of the Delaware bankruptcy court, which is overseeing the bankruptcy proceedings.</p>
<p>The promised payments are higher than the previous estimates of the FTX estate, which had announced in October that it could only repay 90% of customer funds. In January, John Jay Ray III, the current CEO of FTX, revised this estimate, assuring the court he was in a position to fully repay customers.</p>
<p>Despite the uncertainties, the cryptocurrency market has rebounded since the collapse of FTX, and consequently of the FTT crypto, as well as the subsequent bankruptcy. But this recovery has not soothed the anger of many FTX customers, who could not benefit from the rise in cryptocurrency prices, their funds being locked in the limbo of bankruptcy.</p> 
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<p>In a statement released Tuesday, the FTX estate claimed it now had between $14.5 to $16.3 billion in liquid cash available for distribution, after a year and a half of gathering and liquidating the company’s scattered assets across the globe.</p>
<p>“<em>FTX.com had a massive shortfall at the time of the Chapter 11 filing in November 2022 – holding only 0.1% of the Bitcoin and just 1.2% of the Ethereum customers believed they owned</em>,” the press release stated. “<em>As a result, the debtors could not benefit from the appreciation of these missing tokens.</em>“</p>
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<p>Other sources of value, including investments made by FTX and Alameda Research – such as its 8% stake in AI startup Anthropic, which was sold piecemeal to institutional investors for $884 million in March – have been liquidated to generate cash to repay claims.</p>

Crypto: FTX, an unprecedented financial restructuring plan to repay its creditors!

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