FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that.
FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors. The exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them.
The filing said that after paying claims in full, the plan provides for supplemental interest payments to creditors, to the extent that funds still remain. The interest rate for most creditors is 9%.
That may be a diminished consolation for investors who were trading cryptocurrency on the exchange when it collapsed. When FTX sought bankruptcy protection in November 2022, bitcoin was going for $16,080. But crypto prices have soared as the economy recovered while the assets at FTX were sorted out over the past two years. A single bitcoin on Tuesday was selling for close to $62,675. That comes out to a 290% loss, a bit less than that if accrued interest is counted, if those investors had held onto those coins.
Customers and creditors that claim $50,000 or less will get about 118% of their claim, according to the plan, which was filed with the U.S. Bankruptcy Court for the District of Delaware. This covers about 98% of FTX customers.
FTX said that it was able to recover funds by monetizing a collection of assets that mostly consisted of proprietary investments held by the Alameda or FTX Ventures businesses, or litigation claims.
FTX was the third-largest cryptocurrency exchange in the world when it filed for bankruptcy protection in November 2022 after it experienced the crypto equivalent of a bank run.
CEO and founder Sam Bankman-Fried resigned when the exchange collapsed. In March he was sentenced to 25 years in prison for the massive fraud that occurred at FTX.
Bankman-Fried was convicted in November of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement, testimony before Congress and celebrity endorsements from stars like quarterback Tom Brady, basketball point guard Stephen Curry and comedian Larry David.
The company appointed as its new CEO John Ray III, a long-time bankruptcy litigator who is best known for having to clean up the mess made after the collapse of Enron.
“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” Ray said in a prepared statement.
FTX, technically, remains a company but its future is unclear. In early 2023, Ray said that he had formed a task force to explore reviving FTX.com, the crypto exchange.
The sordid details of a company run amuck that emerged after its assets were seized would hamstring almost any business attempting a comeback, but there may also be different parameters for cryptocurrency exchanges.
The rival crypto exchange Binance briefly explored acquiring FTX before it collapsed in late 2022. Its founder and former CEO Changpeng Zhao, was sentenced last week to four months in prison for looking the other way as criminals used the platform to move money connected to child sex abuse, drug trafficking and terrorism.
Binance is still the largest crypto exchange in the world.
The bankruptcy court is set to hold a hearing on the dispersion of FTX assets on June 25.
FILE - The FTX logo appears on home plate umpire Jansen Visconti's jacket at a baseball game with the Minnesota Twins on Sept. 27, 2022, in Minneapolis. Failed cryptocurrency exchange FTX says that nearly all of its customers will receive the money back that they are owed, and some will get more than that, according to its reorganization plan. FTX said in a court filing Tuesday, May 7, 2024 that it owes about $11.2 billion to its creditors. (AP Photo/Bruce Kluckhohn, File)
MIAMI (AP) — Harrison Bader and Tyrone Taylor each drove in two runs in a four-run first inning, star closer Edwin Díaz was not used in a save situation and the New York Mets beat the Miami Marlins 7-3 on Sunday for just their second win in seven games.
Brandon Nimmo homered and Francisco Lindor singled twice following a 1-for-27 skid as the Mets rebounded from blowing a four-run, ninth-inning lead on Saturday and avoided a three-game sweep. New York stopped Miami’s four-game winning streak.
“You’re not defined by what you do the day before. You’re defined by how you get up from adversity,” Lindor said. “We wanted this one for sure. I think it’s important to win after a tough loss like that.”
Sean Manaea (3-1) allowed two runs and five hits in five innings. Sean Reid-Foley and Jake Diekman pitched an inning each, and Reed Garrett got his second save by allowing one hit over two innings with four strikeouts in a 34-pitch outing.
Díaz has a 10.80 ERA over his last eight appearances after serving up four homers in 8 1/3 innings. He has blown three of his last four save chances.
“We all believe in him. We all know he’s going to be back,” Garrett said. “Whenever my name’s called, I’ll pitch, but I know as a collective unit we all believe in Edwin and we know what he can do.”
New York (21-25) had dropped five games under .500 on Saturday for the first time since an 0-5 start.
“Not an easy weekend, not the way we expected, but we just have to continue to move forward,” Mets manager Carlos Mendoza said. “Today was a huge win for us.”
With New York ahead 4-3, Nimmo hit a two-run homer off Anthony Bender in a three-run ninth that included Brett Baty’s RBI single.
“I was just looking for a good pitch in the middle of the plate to drive,” Nimmo said. “I was able to hit that ball — good launch angle — and hit it hard. Found its way out of the ballpark.”
Nimmo returned to the lineup Saturday after missing two games because of a stomach illness.
“I’m coming around,” Nimmo said. “It’s been a little bit of a journey the last three days to get over the sickness. Right now, I’m just trying to get some appetite back. I’m definitely not at 100%. Just trying to battle through it and glad that I was able to help out there at the end and solidify the win.”
Dane Myers hit a two-run homer in the second, and Christian Bethancourt had a solo drive in the seventh against DIekman.
Sixto Sánchez (0-2) allowed four runs and six hits in four innings. He gave up Taylor’s two-out double in the first and Bader’s single.
“He was obviously better second through the fourth inning but he put us in a hole early,” Marlins manager Skip Schumaker said. “At this level it’s hard to come back from four runs every single time. He’s not giving his teammates a chance to win.”
Miami recalled right-handed reliever Emmanuel Ramirez from Jacksonville and optioned right-handed reliever Anthony Maldonado to the Triple-A farm team.
TRAINER’S ROOM
Mets: DH J.D. Martinez (flu symptoms) didn’t play but was available to pinch hit. Mendoza said Martinez played through the illness the prior two days.
Marlins: INF Tim Anderson (lower back tightness) homered and had three singles in five at-bats during a rehab game with Jacksonville on Saturday, then went 0 for 4 with a walk on Sunday.
UP NEXT
Mets: RHP Tylor Megill (0-1, 2.25) will start the opener of a three-game series at Cleveland on Monday. RHP Ben Lively (2-2, 3.06) will start for the Guardians.
Marlins: LHP Ryan Weathers (2-4, 3.81) is scheduled to start the opener of a three-game home series against Milwaukee on Monday. The Brewers will go with RHP Joe Ross (2-4, 4.61).
AP MLB: https://apnews.com/hub/mlb
New York Mets' Sean Manaea delivers a pitch during the first inning of a baseball game against the Miami Marlins, Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
New York Mets' Brandon Nimmo (9) and Francisco Lindor (12) congratulate each other after they scored on a double by Tyrone Taylor, during the first inning of a baseball game against the Miami Marlins Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
New York Mets center fielder Harrison Bader is unable to catch a ball hit by Miami Marlins' Josh Bell for a double, during the first inning of a baseball game, Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
Miami Marlins third base Emmanuel Rivera, right, tags out New York Mets' Harrison Bader as he slides into third base during the fourth inning of a baseball game, Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
New York Mets center fielder Harrison Bader (44) catches a ball hit by Miami Marlins' Josh Bell as both he and left fielder Tyrone Taylor (15) vie for the ball during the fifth inning of a baseball game, Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
New York Mets relief pitcher Reed Garrett, right, and catcher Omar Narvaez celebrate after the Mets beat the Miami Marlins 7-3, during a baseball game, Sunday, May 19, 2024, in Miami. (AP Photo/Wilfredo Lee)
