The bankruptcy plan of FTX has been approved in Delaware.

On Monday, a United States court in Delaware approved the bankruptcy plan of the cryptocurrency platform FTX, marking a significant turning point for the customers and creditors of the failed exchange. 

This decision represents a crucial step in the process of resolving the bankruptcy of FTX, one of the most well-known cases in the cryptocurrency sector, and offers the hope of substantial reimbursements for those who suffered losses in the 2022 collapse.

The Delaware court has given the green light to the second amended bankruptcy plan, presented in September, after 96% of the creditors voted in favor of the plan, both in number and in amount. 

The plan provides that FTX customers receive cash refunds that, in some cases, could exceed 100% of the losses suffered during the collapse of the exchange. This news has brought a breath of relief to those who were caught up in the bankruptcy and offers a rare example of substantial compensation in a bankruptcy case of this magnitude.

The bankruptcy plan of FTX: a turning point for creditors in the Delaware court

The bankruptcy of FTX, one of the largest in the history of criptovalute, has shaken the entire sector and highlighted the vulnerabilities of unregulated criptovalute exchanges. 

However, the compensation plan approved on Monday represents a significant success for the lawyers and liquidators who have worked tirelessly to return to clients the value of their holdings.

According to the lawyers of the FTX estate, clients can expect average refunds of 118% of the value of their holdings at the time of the bankruptcy, which occurred in November 2022. In some cases, creditors could receive up to 140% of their losses, an exceptional outcome in a bankruptcy context.

This repayment plan has been positively received by a large part of the creditor community, many of whom feared they would never see their funds again. The promising figures, along with the efficiency of the legal process conducted in the Delaware court, represent a ray of hope for the thousands of individuals and companies involved.

The bankruptcy of FTX was declared in November 2022, following a series of financial scandals and legal issues that overwhelmed the platform. 

The collapse of FTX triggered a wave of panic in the world of cryptocurrencies, with billions of dollars frozen and thousands of customers left without access to their funds. The failure of the exchange also led to the fall from grace of its founder, Sam Bankman-Fried, who is facing criminal charges for fraud and money laundering.

After the collapse, a process of liquidation of FTX’s assets was initiated, with the goal of returning funds to the creditors. In September 2023, the FTX legacy presented the second amended bankruptcy plan, which was put to a vote among the creditors.

What to expect in the coming months

With an overwhelming consensus, 96% of the creditors approved the plan, which was then submitted to the Delaware bankruptcy court judge.

The decision of the court represents an important step forward for anyone who was involved in the bankruptcy, offering a concrete hope of recovery of losses. Thanks to the joint work of lawyers, liquidators, and financial advisors, the bankruptcy plan of FTX has been structured to ensure a fair and transparent distribution of the available funds.

Although the bankruptcy plan of FTX has been approved, the actual distribution of the funds will still take some time. 

The lawyers involved in the trial emphasized that the reimbursements will begin in the coming months, but it may take several years to complete the entire distribution process, given the complexity of the situation and the number of creditors involved.

For FTX clients, the reimbursement will be made in cash and calculated based on the value of their holdings at the time of the bankruptcy. This means that, regardless of the bull or bear markets in cryptocurrencies following the collapse of FTX, clients will be compensated based on the historical value of their assets.

 Additionally, the plan includes a progressive repayment structure, which means that creditors with larger amounts might receive proportionally higher repayments.

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Implications for the crypto sector

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The bankruptcy of FTX and the subsequent approval of the compensation plan have raised important issues in the cryptocurrency sector. Firstly, the collapse of a giant like FTX has highlighted the need for greater regulation and transparency in cryptocurrency exchanges. 

The speed with which the exchange failed highlighted the fragility of these markets and prompted many industry experts to call for more stringent reforms.

Secondly, the ability of the Delaware court to approve a compensation plan so favorable to creditors could serve as a model for future bankruptcies in the bull sector. 

Many observers see this case as an example of how courts can effectively and quickly handle complex situations such as the bankruptcy of a large exchange.

In conclusion, the decision of the Delaware court represents a victory for the creditors of FTX and an important signal for the cryptocurrency sector, which is trying to