FTX Creditors Could Receive Up to 142% of Claims in $16.3B Payout Plan

FTX, the cryptocurrency exchange that filed for bankruptcy in November 2022, has submitted an updated reorganization plan that estimates between $14.5 billion to $16.3 billion available for distribution to creditors. The plan offers hope for the estimated 9 million customers and investors who experienced substantial losses when FTX collapsed, with some creditors potentially receiving payouts exceeding their initial claims by up to 142%. The plan prioritizes smaller creditors by creating a "convenience class" for those with claims of $50,000 or less, with the exchange expecting most of these creditors to receive around 118% of their claims within two months of court approval. FTX plans to generate the distribution pool by selling various assets, including investments held by Alameda Research and FTX Ventures businesses, and possible settlements from ongoing legal cases.