SUMMARY

• Over 94% of FTX Dotcom customers voted to approve the reorganization plan, with nearly all creditor classes in favor.
• Two creditor classes did not return ballots and were presumed to accept.

FTX’s reorganization plan has earned solid backing, with 94% of Dotcom creditors voting in favor, as uncovered by restructuring agent Kroll. The plan aims to return 118% of claims in cash to the majority of creditors, covering roughly $6.83 billion in claims. Moreover, two creditor classes failed to return polls but were presumed to have accepted the plan. With the approval from creditors secured, the next major hurdle is the bankruptcy court’s affirmation of the reorganization, set for a hearing on October 7. However, challenges may emerge, especially potential objections from the U.S. Securities and Exchange Commission (SEC) concerning the use of stablecoins for repayment.

The vote breakdown shows that 94.48% of Dotcom customer entitlement claimants who submitted polls — representing approximately $6.83 billion in claims — supported the plan. Among U.S. customer claimants, 89.1% who participated in the vote, representing $60.99 million in claims, also endorsed the plan. Essentially, 95.88% of Dotcom convenience claimants, covering $223.59 million in claims, voted in favor of the reorganization. Overall, approximately 98% of creditors are set to get at least 118% of their claim value in cash, in spite of the fact that the bankruptcy claims were calculated based on cryptocurrency values at the time of FTX’s collapse.

Back in August, when voting concluded, the restructuring team declared that it had gotten “overwhelming preliminary support” from all classes of creditors, with over two-thirds of solicited claims by value participating in the vote. This level of engagement set the plan’s path to approval, with the lion’s share of FTX’s creditors satisfied with the proposed compensation structure.

Despite this progress, the approaching October 7 confirmation hearing presents a last deterrent for the reorganization plan. The SEC’s potential objections, especially with respect to the use of stablecoins in creditor reimbursements, may impact the court’s choice. Should the plan be affirmed, it would stamp a critical step in FTX’s endeavors to recuperate from its collapse and return value to its creditors. The court’s ruling could shape the future course of crypto bankruptcy procedures, especially in how cryptocurrency-based claims are taken care of.