FTX creditors will receive compensation of 142% -118%

Media reports that cryptocurrency exchange FTX has amassed billions of dollars in funds, exceeding what its customers lost in its November 2022 collapse. This allows them to receive full compensation after the company's bankruptcy. The extra cash will be used to pay interest for over two million customers of the company, a rare outcome as creditors usually get very little money in US bankruptcies. According to the company statement, once all assets are sold off, there could be up to $16.3 billion available for distribution. It owes about $11 billion to customers and other non-governmental creditors.

According to court documents filed Tuesday night by the federal court in Wilmington, Delaware handling the FTX case, despite all debts being fully repaid with interest added on top, shareholders won't be left with anything. Depending on the type of claim involved in this case some creditors may receive up to 142% of their debt owed back; however most clients will likely receive a return rate at 118% from what they had on FTX platform when it declared bankruptcy under Chapter 11.

The company is currently operated by restructuring advisors and proposes setting up a fund that would pay out certain creditors (including those who lent cryptocurrencies) otherwise these funds would go towards government regulators.

As FTX gradually enters into final stages of its bankruptcy proceedings payments might still take several months.