CRIMINAL CRYPTO CAPITALI$M
FTX has billions more than required to repay bankruptcy victims
FTX, once a leading cryptocurrency exchange, has successfully gathered billions in surplus funds following its November 2022 collapse.This unexpected financial turnaround enables the firm to fully compensate its customers for their losses under its bankruptcy plan.Newly appointed CEO John Ray announced, "We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors."
FTX anticipates over $16 billion in cash post asset sale
Following the sale of all its assets, FTX expects to have up to $16.3 billion in cash available for distribution, according to a company announcement.The firm's debts total around $11 billion, owed primarily to customers and other non-governmental creditors.Earlier this year, the company had approximately $6.4 billion in cash due to a surge in cryptocurrency prices, including Solana, a token heavily backed by FTX's disgraced founder Sam Bankman-Fried.
FTX's recovery aided by cryptocurrency resurgence and asset liquidation
In addition to the cryptocurrency surge, FTX has also liquidated various other assets such as stakes in venture capital projects like Anthropic, an artificial intelligence company.Despite comparisons to the fraudulent collapses of Enron and Bernie Madoff's Ponzi scheme, no funds will remain for equity holders once all debts and interest have been fully paid.The task of locating the company's assets and deciphering a complex network of global accounts has been undertaken by restructuring advisers.
FTX's revised reorganization plan awaits court approval
FTX's revised reorganization plan suggests that most creditors will receive approximately 118% of their claims within two months.The plan is yet to be approved by a US bankruptcy court, with Judge John Dorsey set to consider the creditors' vote when deciding whether to approve the plan later this summer.FTX declared bankruptcy in November 2022. Its founder swindled customers and investors out of billions, using the cash for personal gain and to cover his hedge fund, Alameda Research's debts.
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