Cryptocurrency exchange FTX has received court approval for its bankruptcy plan to repay up to $16.5 billion to customers.

Court Approval and Repayments

FTX's bankruptcy plan was approved by U.S. Bankruptcy Judge John Dorsey, who highlighted it as a model for complex Chapter 11 cases. The plan, supported by agreements with FTX customers, creditors, U.S. agencies, and international liquidators, prioritizes customer repayments.

FTX’s Collapse

FTX's bankruptcy followed fraud charges against founder Sam Bankman-Fried, who received a 25-year prison sentence. FTX is negotiating with the U.S. Department of Justice over $1 billion seized in Bankman-Fried's criminal case.

Customers and Current Status

FTX expects to repay 98% of customers who held less than $50,000 on the platform within 60 days. Some customers express disappointment as the repayment plan is based on account balances from the bankruptcy time, not current cryptocurrency prices.

FTX's plan marks a major step forward in winding down operations and paying customers, despite some dissatisfaction among them.