According to an announcement, FTX intends to reimburse 98% of its creditors up to 118% of their claims in cash. This move marks a significant development since the exchange filed for bankruptcy 17 months ago.

Under the proposed plan, creditors with claims amounting to $50,000 (£40K) or less will be eligible to receive 118% of their claims.

Additionally, non-governmental creditors are set to receive their claims in full, along with a 9% interest calculated from the date of the bankruptcy filing, aiming to compensate for the lost time value of their investments.

The price of the biggest cryptocurrency, Bitcoin, has risen by around 270% since the firm filed for bankruptcy, and FTX was one of the world’s largest crypto platforms before its downfall.

“We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” said John Ray III, CEO and chief restructuring officer of FTX.

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The announcement comes against the backdrop of FTX’s dire financial situation at the time of bankruptcy filing. Despite holding only a fraction of the cryptocurrency assets customers believed it possessed, FTX now anticipates having up to about £13 billion.

The proposed plan also includes provisions for settling claims with government agencies. Notably, the Internal Revenue Service (IRS), which was owed $24bn (£19.2bn), is set to receive a $200 million (£160.3m) cash payment and a $685m (£549m) subordinated claim, with similar arrangements in place for other governmental claimants, including the Commodity Futures Trading Commission (CFTC).

As FTX navigates the final stages of its bankruptcy proceedings, stakeholders eagerly await court approval of the proposed repayment plan.