FTX, a bankrupt cryptocurrency exchange, has been granted permission by a court to ask creditors to vote on a liquidation plan that would reimburse customers in cash.

The company has settled with US government agencies and sold off assets acquired with improperly obtained customer funds, including investments in real estate, venture capital funds, and cryptocurrency and other tech companies. U.S.

Bankruptcy Judge John Dorsey approved FTX’s documents and began voting on the wind-down plan during the hearing.

FTX claims it will pay back all customer claims in full, plus interest, and has collected up to $16 billion since declaring bankruptcy, including roughly $12 billion in cash.

However, some FTX users contest the insolvent exchange’s claim of a “full recovery,” arguing that FTX will compensate customers based on significantly reduced cryptocurrency prices as of November 2022.

FTX’s CEO, John Ray, stated that cash payments are the most equitable way to allocate value to a broad range of clients who own various cryptocurrency assets whose valuations have dramatically changed since the company filed for bankruptcy.