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Bankrupt Crypto Exchange FTX to Pay Out Billions of Dollars - Coin Bulletin
Bankrupt cryptocurrency exchange FTX is set to pay billions of dollars to its creditors.**
FTX will pay at least 118%** to 98% of its creditors as part of its restructuring plan. According to the company's statement, other creditors will also receive full payments based on the value of their money left on the exchange at that time.
FTX CEO John J. Ray III said he was pleased that the creditors were in a position to pay all of them with interest.
FTX aims to have between $14.5 billion and $16.3 billion in cash for repayments until the restructuring plan is approved by a court in Delaware. For this, the company has been cashing out various assets in its reserve for about a year and a half.
A large portion of these assets were obtained from investments made by businesses linked to Alameda and FTX Ventures. Since the company had very little Bitcoin and Ethereum at the time of FTX's collapse, creditors will not be able to benefit from the increase in their price.