Under the yet-to-be-approved plan, 98% of FTX creditors will get overpaid on their claims and the bankrupt exchange has more money than it needs to repay customers.
FTX plans to fully repay all its creditor’s claims plus “billions in compensation for the time value of their investments” with 98% slated to get up to 118% back — only for those claiming $50,000 or under.
In a May 7 statement, the bankrupt crypto exchange said the plan was “subject to being finalized and approved” by a Delaware Bankruptcy Court.
Only creditors holding claims in an allowed amount below $50,000 will be eligible for the 118% recovery, which FTX anticipated was “98% of the creditors of FTX by number.”