Under the plan, other non-government creditors will receive 100% back, plus up to 9% interest, to cover the “time value” of their investments. The arrangement is still awaiting approval by the Delaware bankruptcy court, which oversees the bankruptcy process. Proposed payouts are higher than previous FTX property estimates. In October, the FTX property said it expected to refund only 90% of customer funds. In January, current FTX CEO John Jay Ray III revised that estimate, telling the court he could pay customers in full.

In a press release on Tuesday, the FTX estate said it expects to have between $14.5 billion and $16.3 billion of cash available for distribution by the time its plans are approved by a Delaware bankruptcy court — a move to consolidate and liquidate the company’s scattered assets around the world. The result of one and a half years of work.

“As previously disclosed, FTX.com had a large shortfall at the time of its Chapter 11 filing in November 2022 – only 0.1% of Bitcoin it believed customers owned and only 1.2% of Ethereum,” the press release said. “He had it,” he stated. “Accordingly, the Debtors were unable to benefit from the increase in value of these missing tokens during these Chapter 11 cases.”

Investments made by FTX and Alameda Research — such as its 8% stake in artificial intelligence startup Anthropic — were liquidated to raise cash to repay claims, including those sold piecemeal to institutional investors for $884 million in March.

FTX’s new reorganization plan would also resolve a number of demands from regulators and government agencies, including the Internal Revenue Service (IRS) and the U.S. Commodity Futures Trading Commission (CFTC).

The IRS agreed to settle the $24 billion claim in exchange for a $200 million cash payment and $685 million in subordinated debt to be paid only after all creditors and other government entities are paid.

The CFTC and other unnamed government creditors agreed to delay their claims as long as FTX users and investors are paid in full, with interest. There are also plans for a special fund created to provide “additional compensation” to certain customers and creditors, according to the press release, but the details of that agreement have not yet been finalized.

A hearing to discuss the proposed plan is scheduled for June.

Sam Bankman-Fried, FTX’s former CEO and convicted fraudster, previously attempted to use the property’s ability to pay customers in full as evidence that his exchange’s crash caused “zero” harm to his customers.

Bankman-Fried’s lawyers argued before his sentencing in March that his client should receive a light sentence because customers would get all their money back. Ray, along with dozens of FTX creditors, argued that just because he was able to raise enough money to pay off the estate’s victims (tens of thousands of hours were spent uncovering every possible dollar, token or other asset in the wreckage of Mr. Bankman-Fried’s vast criminal enterprise) did not mean his conduct was not criminal .

Bankman-Fried was sentenced to 25 years in prison. He plans to appeal his sentence and conviction.