United States Bankruptcy Judge John Dorsey has given the green light for cryptocurrency exchange FTX to wind down its operations. This move is part of an effort to repay the platform’s users.
On October 7, during a hearing in the U.S. Bankruptcy Court for the District of Delaware, Judge Dorsey approved FTX’s liquidation plan. This plan allows the exchange’s debtors to repay 98% of users, with each receiving roughly 119% of their claimed account value.
The court’s approval comes nearly two years after FTX filed for bankruptcy in November 2022. The case led to several criminal charges and civil lawsuits.
FTX CEO Calls It a Major Milestone
FTX CEO and chief restructuring officer, John J. Ray III, called the court’s decision a significant step toward repaying customers and creditors.
“We are ready to return 100% of bankruptcy claims, plus interest, for non-governmental creditors,” Ray said. “This will be the largest and most complex asset distribution in bankruptcy history.”
This plan marks a major development as FTX continues to resolve its financial issues.
