US Court Greenlights FTX Asset Compensation Plan for Victims

US Court Approves FTX Asset Compensation Plan

On October 7, a US court approved the FTX asset compensation plan, marking a significant milestone for victims of the bankrupt cryptocurrency exchange. After nearly two years of uncertainty, creditors can expect to reclaim up to 118% of their requested assets, a total estimated between $14.7 billion and $16.5 billion.

Key Highlights of the Compensation Plan

The Delaware District Bankruptcy Court's decision is a relief to many affected users. Here are some key points:

• 98% of creditors will receive compensation.
• Payments are expected to start within 60 days of the plan's enactment.
• The compensation plan had the backing of 94% of FTX creditors and customers.

Background on FTX’s Restructuring

In May, FTX announced its compensation plan, estimating the recovery of over $16 billion in assets. Despite some dissenting opinions, the approval marks a hopeful turn for many who lost investments during the exchange's collapse.

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