Following an extensive review of the reorganization strategy, the troubled cryptocurrency exchange FTX has announced plans to allocate $6 billion to affected users, specifically targeting those impacted by its 2022 collapse.
This plan, which has garnered approval from an ad hoc committee, aims to provide relief to those who suffered losses during the firm’s downfall.
Support from creditors has been notably strong, with 94% of those voting from the “dot com customer entitlement claims” class endorsing the proposal. Out of 66 committee members, all voted in favor, marking a significant advancement toward asset distribution for FTX creditors.
Kroll Restructuring Administration, responsible for overseeing the voting process, reported overwhelming support across nearly all creditor categories. The two classes that did not vote are presumed supportive, leading analysts to suggest that the confirmation hearing set for October 7 may simply be a procedural formality.
Analyst Tom Dunleavy anticipates that distributions could begin within 4 to 8 weeks, aiming for completion by year’s end for all registered claims. Reports indicate that repayments will start following three upcoming hearings on October 22, November 20, and December 12.
For allocations, 89.1% of those with “US customer entitlement claims” are set to receive approximately $60.99 million, while 95.88% of creditors in the “dotcom convenience claims” category will obtain about $223.59 million. Most creditors are expected to recover at least 118% of their claims in cash.
However, it’s important to note that these figures are based on the cryptocurrency values at the time of claim submission, which means creditors may incur losses due to fluctuations in market prices since then.
The first week of July brings several important developments in the United States that could influence both traditional markets and the cryptocurrency sector.
Ric Edelman, one of the most influential voices in personal finance, has radically revised his stance on crypto allocation. After years of cautious optimism, he now believes that digital assets deserve a far larger share in investment portfolios than ever before.
In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.
Coinbase has emerged as the best-performing stock in the S&P 500 for June, climbing 43% amid a surge of bullish momentum driven by regulatory clarity, product innovation, and deeper institutional interest in crypto.