FTX weighs in on new bankruptcy plan to make customers whole
Want to give you an update on a story that we brought to you last night. Mackenzie Sagalos is back with more on the FTX saga back. So Brian, we have some additional contacts from FTX and the bankruptcy team about their plan to make customers whole. A statement given to CNBC tonight by FTXCEO John Ray says FTX filed a consensus based plan of reorganization under the supervision of the US Bankruptcy Court that contemplates the return of 100% of bankruptcy claim amounts plus interest for non governmental creditors. Now there have been questions. About why FTX customers aren’t able to benefit from the 300% jump in Bitcoin and other cryptocurrencies, John raised statement answers that saying ftx.com had a massive shortfall at the time of the Chapter 11 filing in November 2022, holding only 0.1% of Bitcoin and only 1.2% of the Etherium that customers believed that the exchange held. We cannot give tokens back that we never had. As required by bankruptcy law, the plan allocates value among competing claims. Based on the value of each creditor’s claim at the petition date now former FTX CEO Sam Bateman, Freed was found guilty last year of running a fraudulent exchange with Ponzi. Like economics, he was sentenced to 25 years. Equity stakeholders of FTX, including Bankman, Freedom, Self and other high profile investors were all wiped out. There’s no recourse for them. They took a risk and it didn’t work out. As for where the upwards of $16.3 billion raised by FTX CEO John Ray is going now, some of that goes to legal fees. Some to the IRS, some to the Justice Department, and for other settlements. There’s a hearing in June to consider the proposal, and if approved, customers should see their money within a few months. FX says it is quote proposing to give all the value we can to creditors equally.