Out-of-pocket FTX creditors will receive all of the funds they lost when the former cryptocurrency exchange collapsed in late 2022.
A reorganisation plan filed by the group’s administrators said 98% of creditors would receive 118% of their allowed claims in cash within 60 days after plan approval.
The remaining creditors are expected to get 100% of their claims plus additional compensation.
Total assets for distribution are estimated between $14.5 billion and $16.3 billion. FTX said creditors may receive up to 9% in backdated interest payments from the time of the exchange’s collapse.
FTX founder Sam Bankman-Fried was given a 25-year prison sentence for his role in the collapse.
“FTX has achieved this recovery level by monetizing an extraordinarily diverse collection of assets, most of which were proprietary investments held by the Alameda or FTX Ventures businesses, or litigation claims,” read the press release.
The recovery amount could have been much higher, but FTX only held 0.1% of the bitcoin and 1.2% of the Ethereum customers previously believed were held on the platform at the time of its collapse.
Since November 2022, bitcoin has nearly quadrupled in value, bringing the broader cryptocurrency markets up with it.
FTX’s chief restructuring officer John J. Ray III thanked “the numerous governmental agencies, including the United States Department of Justice, the Commodity Futures Trading Commission, the Internal Revenue Service and the Securities Commission of The Bahamas, for their tireless efforts, cooperation and assistance through this complex recovery process”.
“Finally, I want to thank all the customers and creditors of FTX for their patience throughout this process,” he added.