FTX Chapter 11 Bankruptcy Hopeful to Repay Creditors 100+%

FTX is the infamous failed cryptocurrency exchange led by CEO Sam Bankman-Fried, who was found guilty of fraud, among other criminal charges, and sentenced to prison.

FTX then found itself embroiled in a Chapter 11 Bankruptcy. In an amazing turn of events, it has been reported that the Chapter 11 Bankruptcy estate will be repaying many of FTX’s creditors 100% PLUS interest; an incredible return, all things considered!

You might be asking, “what does it mean that the Creditors are getting repaid 100% in a bankruptcy?” OR “I thought bankruptcy wiped everything out?”

Answers:

• The FTX bankruptcy estate has recovered enough value in FTX (assets, income, etc.) that FTX’s creditors might get repaid 100% of their money, plus interest. This is very rare. Especially stemming from a situation in which the company’s CEO was imprisoned for fraud; which would usually indicate that a lot of money that was supposed to be there, isn’t there any more.

• The bankruptcy code allows for some situations for creditors to get paid at least a portion of what they’re owed. In consumer bankruptcies (chapters 7 & 13), creditors can get repaid in the following circumstances:

  • You make enough money to repay some of your debts (chapter 13 bankruptcy)

  • Even if you don’t make enough money to repay, you might have a valuable asset(s) that can be sold in a chapter 7 liquidation, and the proceeds go to repay your debts

• Even in the 2 examples above, it’s common for creditors to only get 1%. Or 5%. Maybe 40%. And the rest of the debt is forgiven/wiped-out/discharged. That’s why it’s so incredible that FTX creditors could potentially get 100% PLUS INTEREST.

Bankruptcy offers many benefits to help eliminate your debts. FREE phone Consultations -- call/text/email me, Lucas Ruffing, to schedule today!

Best,
Lucas Ruffing
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com (email)