In an announcement on Tuesday, crypto exchange FTX disclosed its submission of an amended re-organization plan to a U.S. bankruptcy court, outlining provisions for the distribution of $14.5 billion to $16.3 billion to creditors.
FTX attributed the projected figure to the monetization of assets, primarily investments held by Alameda Research, a crypto-focused hedge fund controlled by Sam Bankman-Fried, along with assets from FTX Ventures businesses and litigation claims.
The proposed distribution amount encompasses assets under the control of chapter 11 debtors, as well as those overseen by liquidators of FTX Bahamas Digital Markets, Bahamas Securities Commission, liquidators of FTX’s Australia unit, the United States Department of Justice (DOJ), and various private entities, as stated by FTX.
The company emphasized that the amended plan emphasizes consensual settlements with key stakeholders, including cases pending court approval.
Earlier this year, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for alleged embezzlement of $8 billion from customers.
Once a leading player in the crypto exchange arena, FTX’s filing for bankruptcy in November 2022 sent shockwaves across the sector, leaving an estimated 9 million customers and investors facing substantial losses.
