The ftx affair has unexpected developments: full reimbursement to all victims including interest!

Exciting news for most account holders of the collapsed FTX exchange. A new reorganization plan, filed Tuesday evening, promises full refunds of their credits, with the possibility of receiving additional amounts.

This unexpected turn of events is made possible by FTX declaring that it has recovered billions more dollars than initially anticipated to cover clients' losses due to the November 2022 collapse.

FTX revealed it has amassed around $15 billion, primarily through the sale of venture capital investments made by the exchange and its affiliate, Alameda Research.

This sum is sufficient to fully reimburse almost all creditors with credits equal to or less than $50,000 (about 98% of creditors). Even other creditors will receive a refund, with a minimum payment of 118% of their credits.

The collapsed exchange's proposed reorganization plan goes beyond merely reimbursing creditors. It also includes additional compensation to offset the time they couldn't use their money after the exchange's failure. This means clients won't just get their money back but might also receive interest.

Justice for FTX Victims? Full Refunds and Interest

This is an unusual event in bankruptcy cases in the United States. Refunding over 2 million clients is exceptional, as creditors usually receive only a fraction of what's owed.

Depending on the type of claim, some creditors might even receive up to 142% refund, more than initially lost.

FTX's refund plan exceeds initial expectations. In October, the company planned to return only 90% of clients' funds. Prospects improved in January when CEO John Ray III told the court he foresaw full client refunds.

According to the document, FTX should have excess liquidity of $16.3 billion after selling all its assets. This is more than enough to settle debts to clients and other non-governmental funders (about $11.2 billion). The document reads:

"The debtors and their stakeholders have had time to explore strategic options and the possibility to monetize illiquid and volatile investments gradually over time."

FTX Asset Sale Saves Refund Plan

FTX successfully liquidated its assets to raise the necessary funds to reimburse creditors.

These include investments made by FTX and its affiliates, such as an 8% stake in startup Anthropic, sold to institutional investors for a total of $884 million during March.

Implementing the proposed distribution plan requires formal approval from the Delaware bankruptcy court. Even if the plan is approved, it will take a few months before funds reach creditors, as FTX is still in the final stages of the bankruptcy process.

FTT Token Soars

Following the refund plan announcement, the FTX exchange's FTT token saw a strong pump.

The token had experienced a sharp decline after the exchange's bankruptcy, leaving little hope for recovery. This morning, FTT gained 35% and rose to $2.23. Currently, it's trading at $1.95, up 18.37% in 24 hours. It's also up 43% on the weekly chart and 11% on the monthly chart.