FTX says creditors overwhelmingly back reorganization plan

Cryptocurrency-trading platform FTX Trading, which declared bankruptcy in November 2022, said an amended reorganization plan won overwhelming preliminary support from all classes of creditors entitled to vote.

More than 95% of creditors who submitted votes on the amended plan, filed with the U.S. Bankruptcy Court for the District Court of Delaware, were in favor of it, the company said, citing unofficial voting reports.

Final voting results will be filed with the bankruptcy court before a confirmation hearing scheduled for Oct. 7.

Earlier this month, FTX and Alameda Research agreed to a consent order requiring them to pay $12.7 billion in monetary relief to fraud victims. This resolved litigation brought against the company by the Commodity Futures Trading Commission.

FTX was ordered to pay $8.7 billion in restitution and $4 billion in disgorgement to compensate losses by victims of a fraudulent scheme orchestrated by the company’s founder, Samuel Bankman-Fried, and other FTX insiders.

In March, The Wall Street Journal reported Bankman-Fried was sentenced to a prison term of 25 years, after a jury found him guilty of stealing billions of dollars from FTX customers and defrauding investors and lenders to Alameda Research, his crypto-investment firm.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com