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FTX Customers Will Get Back Billions After Judge OKs Bankruptcy Plan
A US judge has authorized a plan for fallen crypto exchange FTX to return money to former customers, as the drawn-out bankruptcy process approaches its end.
At a court hearing in Wilmington, Delaware on Monday, judge John Dorsey gave final approval to FTX’s reorganization plan, the terms of which had previously been put to creditors and voted through by a landslide. The money, a jury later found, had been swept into a sibling company and spent on high-risk trading, venture bets, debt repayments, personal loans, political donations, luxury real estate and other illegitimate dealings. Under the plan, government bodies in the United States—including the Internal Revenue Service and the Commodities and Futures Trading Commission—have agreed to suspend high-value claims against FTX until creditors had been repaid (although the IRS will receive a $200 million upfront payment as part of the settlement).
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