The U.S. Bankruptcy Court has approved FTX’s plan to repay creditors a minimum of 118% of their claims. The decision, delivered by Judge John Dorsey on October 7, 2024, marks a pivotal moment in the ongoing fallout from FTX’s collapse.

The repayment, estimated to involve between $14.5 billion and $16.5 billion in assets, will prioritize smaller creditors with claims of $50,000 or less, who are expected to receive payments within the next 60 days. Larger claims may take longer, potentially being resolved by mid-2025​.

The approved plan is noteworthy because it will repay creditors in cash rather than cryptocurrency, a decision that has stirred mixed reactions.

Some creditors had hoped for in-kind distributions, particularly given Bitcoin’s surge from $16,000 at the time of FTX’s collapse to over $63,000 today. However, FTX’s current holdings of Bitcoin and other cryptocurrencies were insufficient to honor such requests​.

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