FTX Plans to Repay Creditors with Interest Amid Bankruptcy

FTX’s lawyers announced a plan to repay 98% of the crypto exchange’s creditors at least 118% of what they’re owed, using funds between $14.5 and $16.3 billion from previous investments. However, payments will be based on the cryptocurrency values from November 2022, when the company collapsed, rather than current, higher values, leading to dissatisfaction among some creditors. This repayment plan, aimed at taking FTX out of bankruptcy, requires court approval. The company’s founder, Sam Bankman-Fried, was arrested in December 2022 and is serving a 25-year prison sentence for fraud and other charges.