The FTX bankruptcy proceedings have recently faced significant scrutiny, as highlighted by Sunil Kavuri, the spokesperson for the leading creditor group. He emphasized that during the bankruptcy filing in 2022, asset liquidation should prioritize payments in **cryptocurrency** rather than a cash equivalent to better serve the interests of the creditors. This sentiment was echoed by lawyer David Adler, who articulated concerns regarding the tax implications of cash payouts, which could substantially impact creditors.
On October 8, reports surfaced stating that Judge John Dorsey from the **Delaware Bankruptcy Court** sanctioned the FTX bankruptcy plan, marking a pivotal step toward fund distribution to **creditors**. Under the approved plan, nearly 98% of creditors are expected to receive cash payouts approximating **119%** of their claims within a two-month timeframe post-liquidation initiation, amounting to a total return estimated between **$14.7 billion** and **$16 billion**. The creditors await further announcements regarding the implementation schedule.
FTX Bankruptcy Plan Approved: Creditors to Receive 119% Cash Return Amid Tax Concerns
