Creditors of the disgraced cryptocurrency exchange FTX are set to receive up to $16.5 billion (£12.6 billion) following a bankruptcy plan sanctioned in the U.S. on Monday
This settlement concludes a tumultuous period that began with the company’s bankruptcy in November 2022, which left millions of customers without access to their funds.
Last year, the exchange’s former chief, Sam Bankman-Fried, was found guilty of misappropriating customer funds before the collapse and was subsequently sentenced to 25 years in prison.
Under the terms of the agreement, former clients will be able to reclaim approximately 119% of the value held in their accounts at the time of the bankruptcy, as per FTX’s statement.
Creditors expect to receive their compensation within 60 days after the plan becomes operative, although the exact date remains to be determined.
