The post Judge Approves FTX Bankruptcy Plans Paving Way For Payouts appeared on BitcoinEthereumNews.com.

Judge John Dorsey of the US Bankruptcy Court for the District of Delaware has finally approved the FTX Bankruptcy plan. This official approval comes about two years after the trading platform collapsed and John Ray III took over. FTX Bankruptcy Plan Approved, What Next? This approval is a positive news for members of the community whose funds got locked on the exchange. Considering the events of the past few weeks, many showed confidence that the FTX bankruptcy plans will be approved by the Court. With this approval, a total of $6.6 billion will now be distributed to FTX creditors as confirmed in a creditors’ voting last week. The timeline for this distribution is slated to span 4 to 8 weeks from now. This voting plan scored massive support or 94% from creditors in the “dotcom customer entitlement claims.” However, the plan did not fly without opposition as entities like Sunil Kavuri, an FTX Creditor representative, opposed the plans. His major concern hinges on the modalities of payment in the FTX bankruptcy plan. While Kavuri preferred crypto equivalent, the exchange has secured approval for a dollar payout. With Judge John Dorsey ratifying the plan, 98% of FTX creditors will get back 118% of their funds in fiat. The total payoit may stretch up to $16 billion per the approved plans. Judge Dorsey highlighted in a statement that the FTX bankruptcy plan marked one of the most complex in related Chapter 11 proceedings. Many investors and creditors are still reeling from the impact of the FTX collapse. The trading platform literally swallowed up to $8 billion of customers’ funds in alliance with Alameda Research. Under John Ray III, the defunct exchange launched a task force to recoup the mismanaged funds. For the past 2 years, the firm sued rival exchanges like Bybit…

---

Filed under: News - @ October 7, 2024 10:28 pm