FTX cleared to repay billions to customers after bankruptcy plan approval

NEW YORK, Oct 7 (Reuters) – FTX received court approval of its bankruptcy plan on Monday, which will allow it to fully repay customers using up to $16.5 billion in assets recovered since the once-leading crypto exchange collapsed.

U.S. Bankruptcy Judge John Dorsey approved the wind-down plan at a court hearing in Wilmington, Delaware, saying FTX’s success made it “a model case for how to deal with a very complex Chapter 11 bankruptcy proceeding.” The plan is built on a series of settlements with FTX customers and creditors, U.S. government agencies, and liquidators appointed to wind down FTX’s operations outside the U.S.