Almost all of the creditors of failed crypto company FTX will end up profiting from the money they put into the exchange, a federal bankruptcy judge ruled Monday.
Ray, who also shepherded Enron through bankruptcy, added that the estate is working to finalize arrangements to make distributions to creditors around the world.
FTX previously estimated that it owes creditors around $11.2 billion.
According to the plan approved by Delaware bankruptcy Judge John Dorsey, 98% of FTX's creditors will get 119% of the amount of their allowed claim as of November 2022, when the exchange filed for bankruptcy protection.
The bankruptcy estate says it will make a separate announcement about the date the payout plan will go into effect and when it anticipates the start of distributions.
Persons:
FTX spiraled, John Ray, Ray, John Dorsey, FTX, Sam Bankman, Fried, — CNBC's Dan Mangan, Caroline Ellison
Organizations:
Enron, Alameda Research, Amazon
Locations:
Delaware, Anthropic