Over 94% Of Dotcom Creditors Vote in Favor of the FTX Restructuring Plan

The FTX Dotcom creditors have strongly supported the company's reorganization proposal, with more than 94% voting in favor of the plan.

The plan proposes returning118% of claims in cash to almost all creditors, representing $6.83 billion in claims by value.The reorganization plan's confirmation hearing is set for October 7.

Creditors Show Overwhelming Support for FTX Reorganization Plan

Kroll Restructuring Administration, the restructuring administrator of the bankrupt crypto exchange FTX, declared the voting result for the company's reorganization.

According to the filing, about 94.48% of Dotcom creditors who returned ballots voted in favor of the plan. The filing reflected that almost all the classes of creditors showed overwhelming support for the restructuring plan. Thoughtwo classes of creditors didn't return ballots, the administrator presumed they also supported the plan.

Further, the filing indicated that the customer entitlement claims class who returned their ballots represented $6.83 billion in claims by value. Meanwhile, about 89.1% of creditors in the US customer entitlement claims class who returned ballots accepted the plan. This class amounts to about $60.99 million in claims.

Also, 95.88% of Dotcom convenience claims class creditors voted yes to the plan. This class represents about $223.59 million in claims.

According to previous information, the FTX restructuring plan indicates the return of 118% of claims to 98% of creditors. However, the evaluation of the claims depends on the value of the relevant crypto assets during the period of implosion.

FTX's new CEO and Chief Restructuring Officer, John J. Ray III, reacted to the voting result.

The CEO stated: The robust voting participation and corresponding results highlight the strong support and consensus for FTX's Plan of Reorganization. Importantly, the Plan's innovative structure provides for the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors and resolves complex disputes with dozens of governmental and private stakeholders."

Meanwhile, the confirmation hearing of the FTX reorganization plan will be held on October 7. This move marks a remarkable feat for the possible conclusion of the collapsed crypto exchange's bankruptcy claims.

Trend of FTX Implosion And Repayment Plan To Creditors

FTX, formerly the third-largest crypto exchange, went bankrupt in early November 2022. The sudden implosion of FTX created a ripple effect on the entire crypto industry, triggering losses worth billions of dollars.

The events surrounding the implosion started with reports about Alameda Research, FTX's sister trading platform, deriving its value from speculative crypto assets.

The news sparked massive customer withdrawals, leaving FTX insolvent and unable to meet requests. In November 2022, the crypto exchange filed for US Chapter 11 bankruptcy protection.

Later, in December 2022, the US authorities leveled criminal and civil charges against FTX's co-founder Sam Bankman-Fried and other executives of FTX and Alameda.

In November 2023, the US court convicted Bankman-Fried on criminal charges. He was later sentenced to 25 years in prison for fraud andtheft of $8 billion from customers.

Meanwhile, the collapse of FTX crypto triggered a crypto contagion, causing several affiliated firms to go bankrupt. Some impacted entities include BlockFi, Celsius Network, Genesis Global, Voyager Digital, and Three Arrows Capital.

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