FTT surged by over 50%, reaching $3.23 after FTX’s bankruptcy plan received court approval, allowing the exchange to fully repay customers using $16 billion in recovered assets. The token later stabilised at around $2.72, according to CoinGecko, after rising 100% in two weeks in anticipation of the decision.
On Monday, Judge John Dorsey of the US Bankruptcy Court in Delaware confirmed FTX’s Chapter 11 reorganisation plan, signalling the nearing end of FTX’s bankruptcy process, nearly two years after its collapse.
“I have no evidence today that the value of FTT tokens would be anything other than zero,” said Judge Dorsey.
Under the plan, 98% of creditors will receive approximately 119% of their approved claims within 60 days, following approval by 94% of creditors, representing $6.83 billion in claims. Recovered funds total between $14.7 billion and $16.5 billion, including assets from FTX, its international affiliates, and government entities.
John J. Ray III, FTX’s CEO and Chief Restructuring Officer, praised the efforts of the team that rebuilt FTX’s financial records and recovered assets globally:
“Today’s achievement is only possible because of the experience and tireless work of the team of professionals supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from the ground up and from there marshalling assets from around the globe,” said John J. Ray III. “It also reflects the strong collaboration we have had with governments and agencies from around the world that share our goal of mitigating the wrongdoings of the FTX insiders.”
Funds will be distributed across over 200 jurisdictions, with the estate working with specialised agents to ensure efficient delivery.
Despite some disputes over payment methods, the court confirmed that cash payments will proceed. Customers are expected to receive their repayments in the coming months.
FTX, once a prominent crypto firm, collapsed in November 2022 after it was revealed that customer funds were used for risky investments. Former CEO Sam Bankman-Fried was convicted of fraud and conspiracy, receiving a 25-year prison sentence. Last month, he appealed his conviction. Caroline Ellison, CEO of Alameda Research, was sentenced to two years in prison and ordered to forfeit $11 billion for her role in the fraud.
