On Tuesday, the firm’s bankruptcy lawyers announced that FTX customers will receive all their money and interest. FTX was one of the most prominent cryptocurrency exchanges in the United States before its collapse in 2022.

The company estimates the customer’s assets to be worth $8 billion. On Tuesday, a bankruptcy plan detailing the funding sources was filed in Delaware federal court. Customers and investors will receive cash held by the company, available NFTs, and wind-down cash proceeds. They will also receive any remaining assets that amount to 118% of what they had on FTX.

The customers’ claims will be calculated based on their holdings as of November 2022, when the crypto exchange filed for Chapter 11 bankruptcy. This means that the customers and investors won’t benefit from the recent Bitcoin price surge. As for now, a Bitcoin is worth more than $60,000, meaning a customer who lost one Bitcoin in November 2022 when FTX collapsed will be entitled to less than $20,000.

FTX to restore customers’ confidence.

“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,” said John Ray, who took over as a  CEO and chief restructuring officer of FTX.

He also thanked all the investors and customers for their patience.

FTX was founded in 2019. The co-founder, Mr. Sam Bankman, 32, was convicted of fraud last year. He defrauded billions of dollars in customer savings to finance venture investments and some political donations. He was sentenced in March to 25 years in prison.

In his analyses, Mr. Ray described the company as the biggest mess he had ever witnessed. During Mr. Bankman’s tenure, he made some successful investments and recovered some from them. In 2021, the company invested $500 million into the artificial intelligence Anthropic, which made those shares much more valuable. This year, the company, through Mr. Ray’s team, sold about two-thirds of FTX’s stake for $884 million.

The plan awaits approval from federal judge John T. Dorsey, who is overseeing the cryptocurrency exchange’s bankruptcy. The court will set the plan’s effective date so that the payments to the investors can be sent within two months. The announcement was well received by customers and investors who feared their billions in FTX deposits would be lost forever.

The reorganization plan received huge support from all of FTX’s major creditor constituencies. This included a $200 million cash settlement of a $24 billion claim against the group by a United States tax collection agency, the Internal Revenue Service. Mr. Ray and his team’s reimbursement effort will look to build trust and bring transparency to the cryptocurrency industry.

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