95% of FTX Users Back Reorganization Plan, Signaling Hope for Exchange’s Revival
On Tuesday, the United States Bankruptcy Court for the District of Delaware heard that approximately 94.5% of FTX clients supported the reorganization plan in a vote held on August 16
In a significant development for FTX, approximately 95% of its users have expressed overwhelming support for the exchange’s proposed reorganization plan.
The vote, which involved FTX customers and creditors, highlighted a collective push towards a possible revival of the beleaguered cryptocurrency platform. Hearings to finalize the approval are now set for October 7, 2024.
On Tuesday, the United States Bankruptcy Court for the District of Delaware heard that approximately 94.5% of FTX clients supported the reorganization plan in a vote held on August 16. This plan aimed to address claims totaling around $6.83 billion. This overwhelming support underscores users’ eagerness to recover their investments following the exchange’s collapse due to allegations of fraud and mismanagement under former CEO Sam Bankman-Fried.
Notably, the proposed plan indicates that, based on digital asset valuations at the time of bankruptcy filing, nearly 98% of creditors could expect to receive at least 118% of their claims in cash.
Preferred shareholders are also in line for a favorable outcome, with the expectation of receiving 100% of their assets back.
