By mid-2024, FTX clients could receive payments in the amount of $9.2 billion for claims against the exchange going through bankruptcy proceedings. This follows from the plan approved by representatives of creditors and the new management of the platform.
The parties reached an “important milestone” after “extended discussions” regarding clients’ property disputes, the press release said.
The agreements require court approval. The corresponding application must be sent to FTX management before December 16.
Users of the platform will be able to count on a total of $8.9 billion, its American division - $166 million.
The indicated values are equivalent to more than 90% of assets at the end of the second quarter of 2024.
“By working together, since the worst financial disaster I have ever seen, debtors and their creditors have benefited enormously from the situation. It could easily result in almost complete losses for clients,” commented the current head of FTX, John Ray.
The adjusted plan involves dividing FTX assets into three pools:
- divided for the benefit of FTX users;
- divided for the benefit of FTX.US clients;
- a common pool of other assets.
Only the first two groups are included in the platform requirements.
“The basic terms of the plan represent a compromise between the creditors’ committee, the debtors, the special client committee and other representatives on a variety of issues,” the creditors’ committee responded.
Eligible customers with claims over $250,000 will have their payments reduced by 15%. Amounts below this threshold will not be subject to adjustment under the plan.
FTX may exclude from settlements any insiders, affiliates and clients who may have knowledge of the commingling and misuse of deposits and corporate funds, it said.
In October, the FTX 2.0 coalition did not rule out that the successful closing of a new round of financing for Anthropic of at least $2 billion would increase the valuation of the AI startup to $20-30 billion and create the preconditions for a 100% refund to FTX clients.
In a March presentation, exchange representatives estimated the total deficit of funds to cover creditors' claims at $8.7 billion, of which about $1.6 billion is in Bitcoin. In June 2023, the platform's current management team announced the return of approximately $7 billion in liquid assets.
In May, FTX filed a lawsuit against Genesis demanding the return of $3.9 billion. Subsequently, the volume of claims was reduced to $2 billion. As a result, the companies agreed to pay $175 million in favor of Alameda Research.
In July, lawyers demanded the return of $71 million from charitable units associated with the exchange.
