Key Points
A US judge has cleared the way for billions of dollars to be refunded to former customers of bankrupt crypto exchange FTX...
At a court hearing in Wilmington, Delaware, on Monday, judge John Dorsey gave final approval to FTXs reorganization plan, the terms of which had previously been put to creditors and voted through by a landslide...
In this case, though, the administrators of the FTX estate were able to recover billions of dollars by liquidating investments made by the exchanges venture capital arm, FTX Ventures, and its sister company, Alameda Research, along with other assets..
Under the plan, government bodies in the United Statesincluding the Internal Revenue Service and the Commodities and Futures Trading Commissionhave 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)...
Many customers held crypto assets like bitcoin on the FTX platform, but through a process called dollarization common to bankruptcies, their claims have instead been assigned a dollar value based on the price of those assets on the date of the bankruptcy filing..
