FTX files new plans to repay creditors

The news: Failed crypto exchange FTX has signed a new agreement with Bahamian liquidators, proposing its plans to repay creditors.

The numbers: Shortly after its collapse in 2022, investigators discovered that USD8.9 billion ($13.2 billion) in customer assets were missing from the exchange. While a significant portion of this amount was claimed to have been recovered, a previous repayment plan proposed that FTX customers should benefit from a ‘Shortfall claim’ which confirms the estimated missing assets from the exchange at approximately USD8.9 billion.

The context: At its height FTX was valued at USD32 billion, however its rapid demise in November 2022 exposed the fraudulent scheme which had been undertaken by executives at FTX and its affiliated trading firm Alameda Research.

The new agreement categorises creditor and customer claims according to the priority put forward by the estate. The value of the claims will be calculated in line with the asset prices on the date FTX filed for bankruptcy in 2022, regardless of the changes in market value since that date. Customers will also be able to nominate whether they would prefer to be paid through the Bahamian liquidation case or the US bankruptcy matter.