A major step forward has been taken on the long road to recovery for users of the collapsed cryptocurrency exchange FTX.
On October 7, a U.S. bankruptcy judge approved a reorganization plan that will allow the exchange to wind down its operations and begin repaying its users, nearly two years after the company’s dramatic downfall.
The ruling, issued by Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware, paves the way for FTX’s debtors to repay approximately 98% of users.
This reimbursement could amount to as much as 119% of their claimed account value, offering a sense of relief for those affected by one of the largest crypto failures in history.
FTX, once a major player in the cryptocurrency world, collapsed in November 2022, sending shockwaves through the industry.
The collapse led to criminal charges against several of the company’s top executives and sparked civil lawsuits, with many users left uncertain about the fate of their funds.
This court approval marks a significant milestone in the efforts to return assets to customers and creditors.
FTX CEO and chief restructuring officer John J. Ray III expressed optimism following the ruling, stating, “The Court’s confirmation of our plan is a critical step towards distributing cash to customers and creditors.”
He stated that this process will lead to “the largest and most complex asset distribution in bankruptcy history.”
