Pre-petition Capital Structure

At the Petition Date, FTX had over 100 different legal entities, each with separate creditors. Below we summarize the general claim types and their asserted amounts in the case. Although the case has not been substantially consolidated, similar claims against different legal entities are receiving similar recoveries under the confirmed Chapter 11 plan of reorganization.

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Plan Treatment

Creditors of FTX will receive a combination of cash payments and interests in a liquidating trust, designed to distribute any future recoveries. These future recoveries will depend on the continued monetization of estate assets, including cryptocurrency, fiat, venture capital investments, real estate, contractual rights to purchase tokens, and various claims and causes of action. Since the Petition Date, the FTX debtors have focused on converting these assets to cash through strategic sales and settlements, while minimizing the risk of market volatility, particularly in cryptocurrency assets. The FTX debtors have emphasized transparency and prudence in asset liquidation to maximize overall returns for creditors, though actual recovery percentages will vary depending on claim type and class and distributions will be made over multiple years. All FTX customer creditors must satisfy the FTX debtors' know your customer (KYC) requirements before they can be eligible to receive distributions.

Estimated Recovery

Most creditors of the FTX debtors, have claims against either FTX Trading, Ltd. (international exchange customers), FTX US (U.S. exchange customers), or Alameda Research (digital asset loan customers). Claims against these different entities are generally being treated the same, so we have grouped similar creditors into the following table to increase clarity. Creditors with claims under USD 50,000 will receive 119% of the Petition Date value of their claims within 60 days of the Plan effective date.  Any further upside in asset appreciation, namely higher values on venture investments, litigation recovery, crypto price appreciation, will benefit larger creditors.

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