FTX's bankruptcy is yielding an unexpected outcome and creditors could receive up to 142% of what they are owed. This remarkable recovery is due to FTX's asset liquidation and the recent cryptocurrency boom.
When the cryptocurrency market was experiencing a massive comeback in March, we made a joke about the creditors of Sam Bankman-Fried's bankrupt exchange, FTX, and predicted that they would get 200% of their claims back.
We were right, as it turns out—as is often the case in the "new abnormal"—because most creditors, or approximately 98% of them, would receive 118% of what they had on the FTX platform on the day the company filed for Chapter 11 bankruptcy, according to the most recent reorganization plan that the bankrupt FTX filed on Tuesday. Remarkably, up to 142% of what is owed to some creditors will be recovered. After court permission, claims will be paid back in cash, however, disbursements won't happen for several months while FTX works through the bankruptcy case...
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