FTX Trading Ltd has revealed a proposal to repay billions of dollars to customers and creditors.
The crypto exchange proposes to liquidate most of its remaining crypto holdings and convert them into cash which will then be distributed to creditors and customers, according to a yet-to-be-determined formula. The proposal is slated for a vote by creditors next year.
The plan will be subject to final approval by US Bankruptcy Judge John Dorsey.
Nigerian crypto company Nestcoin was affected. Nestcoin consequently had to lay off staff, as most of the money it needed for its operations was trapped in the FTX collapse. FTX owed its 50 largest creditors almost $3.1 billion.