With this arrangement, the odyssey that began when the company filed for bankruptcy in November 2022 and millions of consumers lost access to their accounts worldwide would come to a close.
Sam Bankman-Fried, the previous boss, was found guilty last year of embezzling customer funds prior to the collapse and was subsequently given a 25-year prison sentence.
According to FTX, the agreement will enable former clients to get back money equal to roughly 119% of what was in their accounts when they filed for bankruptcy.
It is anticipated that creditors will be paid 60 days following the plan’s official implementation.
This date is still up for debate.
The company’s current CEO, John J. Ray III, is a lawyer who was assigned to manage FTX’s bankruptcy process. He described the plan’s acceptance as a “significant milestone” in the company’s attempts to reimburse the money to individuals and businesses across more than 200 nations worldwide.
In the future, we anticipate returning 100% of the monies filed for bankruptcy claims plus interest to non-governmental creditors through the largest and most intricate bankruptcy estate asset distribution in recorded history, he said in a statement.
Not considering loans to investors and others, almost $8 billion in consumer payments were reported stolen when FTX filed for bankruptcy in late 2022.
