Shiba

Dogecoin

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Bankrupt cryptocurrency exchange, <a href="https://bitcoinist.com/ftx-drops-bombshell-lawsuit/">FTX</a> has <a href="https://x.com/ftx_official/status/1787980476222775319?s=46" rel="nofollow" target="_blank">unveiled</a> a new repayment plan aimed at <a href="https://bitcoinist.com/ftx-creditors-1-billion-crypto/">reimbursing creditors</a> and customers in full and offering billions in the form of compensation for the time value of their investment.&nbsp; 
<h2 id="ftx-to-reimburse-customers-in-full">FTX To Reimburse Customers In Full</h2> 
In a press release on May 7, FTX <a href="https://www.prnewswire.com/news-releases/ftx-files-consensus-based-plan-of-reorganization-302138948.html" rel="nofollow noopener" target="_blank">disclosed</a> that it would be repaying 98% of its customers at least 118% of allowed claims in cash. The <a href="https://www.newsbtc.com/crypto/ftx-scam-crypto-sam-bankman-fried-story/" rel="nofollow noopener" target="_blank">insolvent crypto exchange</a> had filed a new reorganization strategy with the United States Bankruptcy Court of Delaware. 
Related Reading: <a href="https://bitcoinist.com/dogecoin-holders-profit-shiba-inu/">Dogecoin Holders In Profit across 82%, What About Shiba Inu?</a> 
The reorganization plan, which involves the allocation of funds to customers affected by FTX’s fraud scheme, will involve a centralized distribution of all of the company’s assets during the time of its collapse in November 2022 to its creditors and customers.&nbsp; 
The crypto exchange has revealed that it has secured between $14.5 billion to $16.3 billion, after <a href="https://bitcoinist.com/ftx-abandons-restart-plan/">selling assets and properties</a> owned by the company. This specifically includes assets under control of the “Chapter 11 debtors,” the Joint Official Liquidators of <a href="https://bitcoinist.com/ftx-digital-markets-secure-global-settlement/">FTX Digital Markets Ltd.</a>, and FTX Australia, as well as various private parties which have participated in the recovery and repayment process.&nbsp; 
<a href="https://bitcoinist.com/ftx-repayment-plan-bitcoin-valued-at-16000/">FTX’s repayment strategy</a> outlines a comprehensive approach to repay creditors, both governmental and non-governmental. The crypto exchange has stated that it will make complete payments to non-governmental creditors based on the value of their claims determined by the Bankruptcy Court.&nbsp; 
On the other hand, a subordination arrangement is proposed for governmental creditors, prioritizing interest payments to primary classes of <a href="https://bitcoinist.com/battle-over-sam-coins-ftx-customers-demand-millions/">customers</a> and creditors at up to 9%, executed in a timely manner.&nbsp; 
The repayment plan will also establish a unique category known as “convenience class,” <a href="https://bitcoinist.com/ftx-90-settlement-timeline/">specifically focusing on creditors</a> with claims valued at $50,000 or less. This reorganization will effectively streamline the payment process for smaller creditors and expedite compensation.&nbsp; 
The exchange’s amended repayment strategy is still undergoing finalization and awaiting approval from the Bankruptcy Court. However, if the plan receives approval, it is expected that creditors will receive 118% of the value of their allowed claims within 60 days following the plan’s effective date.&nbsp; 
<h2 id="key-settlements-in-repayment-plan">Key Settlements In Repayment Plan</h2> 
In its new payment reorganization plan, FTX disclosed <a href="https://bitcoinist.com/ftx-crypto-settlement-spree/">several settlements</a> mutually agreed upon with primary economic stakeholders. As well as some that are still pending finalization and approval by the Court.&nbsp; 
One of the key settlements involves a resolution of the $24 billion in <a href="https://www.newsbtc.com/ftx/irs-asserts-first-dibs-on-ftx-bankruptcy-payout-to-recover-44-billion-in-taxes/" rel="nofollow noopener" target="_blank">claims filed by the Internal Revenue Service (IRS)</a>. In exchange, FTX has agreed to make a $200 million cash payment and issue a $685 million subordinate claim.&nbsp; 
Additionally, FTX has <a href="https://www.newsbtc.com/ftx/ftx-and-irs-lock-horns-over-24-billion-tax-bill-ftts-key-support-wavers/" rel="nofollow noopener" target="_blank">proposed agreements with the IRS</a> and the Commodities Futures Trading Commission (CFTC) to subordinate tax claims which arose after the commencement of the Chapter 11 cases. Furthermore, the crypto exchange revealed a previously approved settlement with the Joint Official Liquidators of FTX Digital Markets, Ltd., and <a href="https://bitcoinist.com/blockfi-resolves-dispute-with-ftx-alameda-research/">BlockFi</a>, the largest creditor of FTX.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/YIUL7Ht3/" alt="FTT price chart from Tradingview.com (FTX crypto exchange)" width="3286" height="1576">

Bankrupt Crypto Exchange FTX Lines Up $16 Billion To Repay Creditors

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