• FTX says almost all customers will get a full refund through its new reorganization plan.
• FTX estimates it owes around $11.2 billion to its creditors but currently has between $14.5 billion and $16.4 billion to distribute.
• Customers whose claims reach $50,000 or less will get 118% of that claim, and the plan will see 98% of creditors access this repayment.
The collapse of cryptocurrency exchange FTX was a major blow to the digital asset industry. However, FTX has now stated that nearly all affected customers will receive full refunds. This is an extremely positive development for users who lost access to their funds.
FTX Set to Repay $1.1 Billion to Customers
FTX has issued estimates that around $1.12 billion is owed to its creditors. Moreover, the exchange currently has between $1.45 billion and $1.64 billion available to distribute, according to reports. This means FTX is poised to repay some customers even more than their current claims.
A bankruptcy court still needs to approve FTX’s reorganization plan. However, under the plan, customers whose claims are $50,000 or less will get 1.18x of that claim amount. Additionally, 98% of creditors will access this repayment. This will come as a massive relief to FTX customers who lost access to their funds after its collapse.
Where the Funds Came From
FTX raised the funds for these repayments through asset sales and venture investments. Specifically, those investments were held by both FTX and Alameda Research, the two companies at the center of the FTX collapse.
This influx of funds from liquidated assets and investments will allow nearly all affected users to recover their lost funds. While FTX’s downfall delivered a massive blow to crypto, this news of repayments shows a surprisingly positive outcome for regular traders caught up in the FTX fallout.
