FTX creditors will receive 142% -118% compensation

Cryptocurrency exchange FTX has amassed billions of dollars more than it needs from customers it lost in its November 2022 collapse, enabling them to receive full compensation after the company goes bankrupt. The extra cash will be used to pay interest on the company's more than 2 million customers, a rare outcome given that creditors typically get very little money in a U.S. bankruptcy. Once the sale of all assets is completed, the company will have as much as $16.30 billion in cash to distribute, according to the company statement. It owes customers and other non-governmental creditors about $11 billion.
According to court documents filed Tuesday night in federal court in Wilmington, Delaware, which is handling FTX's case, shareholders will leave nothing behind, even though all debts will be paid in full with interest added.
Depending on the type of claim in the case, some creditors can receive up to 142% of what is owed. However, the vast majority of clients are likely to receive 118% of what the company received on the FTX platform on the date of its Chapter 11 bankruptcy.
The company, which is currently run by restructuring advisers, has also proposed setting up a fund to pay some creditors, including those who lent FTX cryptocurrency, money that would otherwise go to government regulators.
As FTX moves into the final stages of bankruptcy, payments could take months.