FTX's Bankruptcy Plan Officially Approved, Altcoin Price Surged Over 50% - Coin Bulletin

**A court in the United States has made a significant decision regarding FTX's bankruptcy process. Judge John T. Dorsey of the Delaware Bankruptcy Court approved FTX's bankruptcy plan. This decision paves the way for customers who suffered losses in FTX's bankruptcy in 2022 to recover a large portion of their losses.

Under the second revised bankruptcy plan, which was introduced in September and is supported by the majority, FTX aims to make a cash payment to customers for an average of 118% of their lost assets. FTX lawyers note that this rate could go up to 140% for some customers. However, the payments will not fully cover the increase in value of Bitcoin (BTC) and other cryptocurrencies during the bankruptcy process.

During the approximately six-hour hearing in court, many companies and individual creditors objected to cash payments instead of crypto and the acceptance of FTX's FTT tokens at zero value. However, the judge dismissed all of these objections.

The FTT price has risen rapidly

The value of FTX's native token, FTT, was heavily debated at the hearing. Sullivan & Cromwell partner Brian Glueckstein, a member of FTX's legal team, stated that FTT tokens "have no fundamental value" and only "make sense when there is a functioning FTX.com platform." Glueckstein also made it clear that FTX.com will not reopen. After the hearing, the price of FTT appreciated by 55% with the court's decision and went up to over $3.

The company's safes are empty

Creditors' requests for the return of their crypto assets in full were rejected due to FTX not having a sufficient amount of crypto. Edgar Mosley, an expert managing FTX's bankruptcy process, stated that the exchange's crypto assets were insufficient. Converting some of the company's investments, such as its stake in the artificial intelligence venture Anthropic, into cash supported its payment capability.

Finally, FTX's new CEO John J. Ray III stated that the company's coffers are almost empty and that there are only 105 Bitcoins worth $17,000 left after former CEO Sam Bankman-Fried was removed from office, while customers had about 100,000 Bitcoins invested in the exchange.