FTX’s Reorganization Plan Secures Support from Over 94% of Dotcom Creditors

• Over 94% of Dotcom voting creditors support FTX’s reorganization plan.
• Approximately 98% of creditors are expected to receive at least 118% of their claim value in cash.
• A confirmation hearing for the plan is scheduled for October 7.

The beleaguered FTX cryptocurrency exchange has received significant backing for its proposed reorganization plan. Kroll Restructuring Administration, the restructuring administrator, reported that over 94% of Dotcom voting creditors expressed their support. 

The results were disclosed in a filing on Monday. It reflects a strong consensus among various classes of creditors, paving the way for potential recovery amid the ongoing bankruptcy proceedings.

The filing states that 94.48% of creditors in the “dotcom customer entitlement claims” class, representing approximately $6.83 billion in claims, support the plan. This demonstrates strong backing from customers who experienced significant losses since the exchange’s collapse in Q4 2022.

Additionally, around 89.1% of creditors in the “U.S. customer entitlement claims” class, totaling about $60.99 million in claims, also voted affirmatively. The “dotcom convenience claims” class showed even stronger support, with 95.88% backing the plan, representing claims valued at $223.59 million.

Notably, two classes of creditors did not submit ballots but are presumed to have accepted the plan. Under the proposed bankruptcy plan , approximately 98% of creditors are expected to receive at least 118% of their claim value in cash. However, the claims are assessed based on cryptocurrency values at the time of bankruptcy in November 2022.

The restructuring team had previously indicated in August that the initial response to the plan was overwhelmingly favorable, with over two-thirds of all solicited claims participating in the vote.

Notably, FTX will submit the final voting results to the United States Bankruptcy Court for the District of Delaware before a confirmation hearing starting on October 7. At this hearing, stakeholders will finalize the next steps in FTX’s recovery process.