In a surprising turn of events, embattled cryptocurrency exchange FTX has revealed that it has accumulated more funds than necessary to settle creditor repayments, according to a recent company statement.

FTX filed an amended Plan of Reorganization and Disclosure Statement with the bankruptcy court on May 7, presenting a proposal to repay creditors between $14.5 billion and $16.3 billion. This amount exceeds the $11 billion owed to customers and other non-governmental creditors, marking a significant surplus that could benefit those awaiting reimbursement.

The exchange attributed this achievement to the monetization of a diverse collection of assets, including proprietary investments held by Alameda or FTX Ventures businesses, as well as litigation claims. This recovery level signals a remarkable turnaround for FTX, which faced a collapse in November 2022.

Under the proposed plan, 98% of FTX creditors with claims under $50,000 would receive around 118% of their allowed claims in cash within 60 days after plan approval. Other non-governmental creditors would receive 100% of their allowed claims, with potential additional interest payments of up to 9% from the time FTX filed for bankruptcy.

FTX CEO John Ray expressed his satisfaction with the proposed plan, describing it as an "unbelievable result" for a bankruptcy case. He highlighted the company's commitment to returning 100% of bankruptcy claim amounts plus interest to non-governmental creditors.

Moreover, FTX has reached settlements to resolve significant claims from the United States IRS (Internal Revenue Service) and the Commodity Futures Trading Commission (CFTC). The exchange aims to establish a fund to provide supplemental payments to some creditors using recoveries that would have otherwise gone to regulators.

However, while the excess funds are a positive development for creditors, payouts are still several months away as the firm finalizes its bankruptcy case.

The surplus cash accumulation has been largely attributed to the recovery in cryptocurrency markets, particularly holdings such as Solana (SOL). SOL prices have surged over 1,100% since November 2022, reflecting the resilience of FTX's heavy cryptocurrency investments.

Despite a recent decline in SOL prices, the asset's overall recovery underscores the potential for cryptocurrency assets to generate significant returns, contributing to FTX's surplus funds for creditor repayments.