FTX, the bankrupt cryptocurrency exchange, has revealed plans to repay creditors the full $11 billion it owes, fueled by a surge in bitcoin prices. Newly appointed CEO John Ray III confirmed that after selling off remaining assets, the exchange may have more than $16 billion, surpassing its debts.

FTX’s Financial Rebound

Following its collapse in November 2022, FTX faced insolvency, prompting Ray’s succession as CEO. However, a favorable market environment, marked by a significant increase in bitcoin prices, has bolstered FTX’s financial outlook.

FTX’s debts, denominated in dollars, contrast with its speculative digital assets and stakes in high-growth startups. The exponential rise in bitcoin’s value since the exchange’s collapse has further fortified its financial position.

Impact on Creditors

While legally entitled to full repayment, many FTX creditors, predominantly former platform users, may feel discontented. Forced to sell cryptocurrency holdings during the exchange’s tumultuous period, they missed out on recent market gains.

The FTX Debtors today filed their anticipated amended Plan of Reorganization and accompanying Disclosure Statement with the U.S. Bankruptcy Court. Read about it here https://t.co/EGmlVdWOaS below: pic.twitter.com/bwwvRolX21

— FTX (@FTX_Official) May 7, 2024

FTX’s liquidity has been augmented by its substantial stake in Anthropic, an artificial intelligence startup. The recent sale of this stake for $824 million has contributed to FTX‘s repayment capability.

Legal Proceedings and Challenges

Former FTX CEO Sam Bankman-Fried‘s legal troubles, including a 25-year jail sentence for fraudulent activities, have added complexity to the exchange’s situation. Bankman-Fried’s argument for reduced sentencing based on expected creditor repayment was dismissed by Judge Lewis Kaplan.