The trustee for %FTX is close to finalizing a deal that will see former clients of the bankrupt %Cryptocurrency exchange repaid in full.
The trustee appointed to oversee the FTX bankruptcy proceedings is asking permission from a judge in the case to allow creditors to vote on a liquidation plan that will see each of them repaid in cash.
Since filing for bankruptcy, the court appointed trustee has recovered up to $16 billion U.S. from FTX, enough to fully repay customers.
The trustee is now asking U.S. Bankruptcy Judge John Dorsey to open voting on a plan that will make every creditor whole and officially winddown FTX.
The vote could end a high-profile procedure that began when FTX filed for bankruptcy in November 2022, citing $12 billion U.S. in missing funds.
However, some FTX customers are complaining about the repayment plan, saying the trustee plans to repay them at lower crypto prices from November 2022 rather than at current prices.
Despite the complaints, Judge Dorsey has already signed off on that approach to valuing creditors claims against FTX.
The crypto market bottomed in November 2022 and has since rallied, pushing the price of Bitcoin to an all-time high of just under $74,000 U.S. in March of this year.
Customers that had %Bitcoin (CRYPTO: $BTC) deposited with FTX when it went bankrupt will receive about $16,800 U.S. in cash per token, which was the price back in November 2022.
Currently, Bitcoin is trading close to $61,000 U.S. per digital token.
Some FTX customers have filed lawsuits outside of bankruptcy court seeking for the FTX estate to repay them at the current value of various cryptocurrencies.
FTX, once the world’s top crypto exchange, left an estimated nine million customers facing billions of dollars in losses when it filed for bankruptcy protection from its creditors.
FTX’s trustee, John Ray, who took over after FTX filed for bankruptcy, has said that, under the law, the crypto exchange is only required to return the cryptocurrency that customers deposited.
