FTX’s bankruptcy process is coming to an end: Judge John Dorsey has approved a payout plan, under which creditors will receive up to 118% of their funds in U.S. dollars. After two years of waiting, the U.S. Bankruptcy Court for the District of Delaware approved the company's reorganization, and FTX will begin payouts using $16 billion of recovered assets.
Payouts will also go to exchange customers and U.S. government agencies, while liquidators outside the U.S. will receive their funds. FTX plans to complete payouts to customers, 98% of whom had less than $50,000 in their accounts, within 60 days.
Some creditors insisted on payments in cryptocurrency to avoid taxes, but the judge denied these requests.
To raise funds for payouts, FTX returned donations, sold part of its assets, including stakes in Anthropic and cryptocurrencies.