Today, FTX Trading submitted its expected modified plan of reorganization along with its linked debtors.

• Within sixty days of its effectiveness, 98% of creditors obtain at least 118% of their allowable claims; other creditors earn billions in compensation. The plan would avoid expensive and drawn-out litigation to settle issues between public and private players.

• The return on investment to FTX creditors could result in a significant influx of money into the cryptocurrency markets, as FTT slightly increases.

• A compensation plan for its consumers and creditors has been made public by TX Exchange. Although the plan’s execution is still awaiting permission from the bankruptcy court, it might result in enormous liquidity for the sector.

After nearly two years (nearly 17 months) the now-defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware, FTX has now filed a consensus-based plan for its reorganization.

In addition to expressing gratitude to all parties involved, the statement read, “Return 100% of bankruptcy claim amounts plus interest for non-governmental creditors.” FTX’s chief restructuring officer and executive officer, John J. Ray III, stated:

FTX’s independent Board of Directors would like to express its sincere gratitude[…]Lastly, I would like to express my gratitude to all of FTX’s creditors and customers for their patience during this process.

Two salient features of the plan for its creditors and customers are:

• “Within 60 days of the program’s implementation, 98% of FTX creditors will get at least 118% of approved claims in cash.

• In addition to billions in compensation for the time worth of their investments, other creditors will get 100% of permitted claims.

The strategy would avoid expensive and time-consuming litigation in order to settle disagreements with public and private parties.

The plan outlines how the exchange plans to allocate to consumers and other creditors “virtually all of the assets associated with FTX at the time of its collapse in November 2022,” pending finalization and approval by the Bankruptcy Court. This implies that, regardless of the current asset price, they will be paid at the 2022 cryptocurrency pricing.

FTX is considering using anything from $14.5 billion to $16.3 billion. This includes the totals of the valued property that has been gathered, converted to cash, and made available. In particular:

• property that the Chapter 11 debtors are in charge of.

• assets under the jurisdiction of the United States Department of Justice, the Bahamas Securities Commission, the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Joint Official Liquidators of FTX Australia, and numerous private parties that have assisted with the recovery efforts.

According to Bloomberg, FTX has accumulated billions of dollars beyond what is required to compensate clients for losses incurred upon its collapse in November 2022. This puts the corporation in a position to benefit fully from the company’s bankruptcy.

Receiving payouts to creditors would indicate a lot of liquidity in the market, which would be optimistic for cryptocurrencies overall.

The FTX token FTT increased by over 2% to trade at $1.66 at the time of writing in the immediate wake of this news.