FTT jumps 50% after FTX gets court approval to repay customers in full

FTT experienced a significant surge of over 50% to $3.23 after FTX received court approval for its bankruptcy plan. This plan will enable FTX to repay its customers in full using $16 billion in recovered assets, including interest. Following the surge, FTT’s value has settled around $2.72. The token’s value has seen a 100% rise in the last two weeks as investors eagerly awaited the confirmation hearing. The approval of FTX’s Chapter 11 plan marks a major milestone in the resolution of the exchange’s bankruptcy saga. Under the restructuring plan, creditors will receive approximately 119% of their approved claims within 60 days after the plan becomes effective. The recovered funds, estimated to be between $14.7 billion and $16.5 billion, include liquidation proceeds from FTX, international branches, government agencies, and collaborative parties. The plan’s implementation date has not been specified, but funds will be distributed to creditors across more than 200 jurisdictions in a safe and efficient manner. Despite some opposition to the payment methods, cash distributions will proceed as confirmed during the court session. With this court approval, FTX customers can expect to receive repayments of their losses in the coming months. FTX, once a respected crypto empire, collapsed in November 2022 due to the revelation that it had used customer funds for risky investments. The former CEO, Sam Bankman-Fried, has been convicted on multiple counts of fraud and conspiracy, resulting in a 25-year prison sentence. Bankman-Fried has filed an appeal against his conviction, and his associates, including Caroline Ellison, CEO of Alameda Research, have also faced legal consequences for their involvement in the FTX fraud. Ellison received a two-year prison sentence and must forfeit $11 billion.