On October 7, 2024, FTX Trading and its connected debtors declared that their Plan of Reorganization had been approved by the US Bankruptcy Court for the District of Delaware. This development comes less than two years after FTX's historic bankruptcy filing in November 2022, which involved the collapse of one of the largest cryptocurrency exchanges in the world. The confirmed Plan aims to provide approximately 119% recovery to 98% of FTX's creditors, contingent upon compliance with know-your-customer regulations and other distribution requirements. FTX estimates that the total value of assets available for distribution ranges between $14.7 billion and $16.5 billion.
John J. Ray III, CEO and Chief Restructuring Officer of FTX, emphasized the significance of the Court's confirmation, attributing the achievement to the diligent efforts of the professional team overseeing the case. He indicated that FTX is preparing for the largest bankruptcy estate asset distribution in history, intending to return full claim amounts plus interest to non-governmental creditors. The estate is also working to finalize agreements with specialized agents to facilitate recoveries for customers across more than 200 jurisdictions globally, thanking all stakeholders for their patience during the reorganization process.
