FTX Making Repayment After Business Collapse.

A U.S. judge has approved FTX's proposal to poll its creditors on a Chapter 11 repayment plan. FTX users will soon vote on this multibillion-dollar plan aimed at repaying individuals whose funds were trapped following FTX's collapse. Judge John Dorsey of the District of Delaware has permitted FTX advisers to seek customer votes. The plan, if accepted, will repay customers and address penalties related to Sam Bankman-Fried’s crypto business collapse.

Most FTX clients are set to receive 119% of their holdings based on November 2022 values, while other creditors could reclaim up to 143%. Despite rising cryptocurrency prices, repayments will use the asset values from November 2022. FTX claims to have recovered $16 billion in assets, enough to repay all customer claims in full based on these 2022 prices. Additionally, FTX will pay the IRS $200 million in priority claims.

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