Bankruptcy judge approves FTX reorganization plan

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and good news for FTX creditors.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching

00:03on the street today.

00:05Investors are hoping to put together a stock market win Tuesday after stocks dropped one

00:09percent the day before.

00:11Earnings season kicks off with quarterly results from Pepsi.

00:14The drinks and snacks conglomerate beat profit estimates.

00:17Sales, however, were disappointing for the second quarter in a row.

00:21Pepsi says price-conscious consumers are continuing to watch their budgets.

00:27In other news, FTX creditors are not only getting back what they were owed, they're

00:31getting it back with interest.

00:33Nearly two years after the revelation of massive fraud by founder Sam Bankman-Freed brought

00:38down the crypto exchange, a bankruptcy judge approved the more than $14 billion payout.

00:44John Ray, who is steering FTX through the bankruptcy process, said in a statement, quote,

00:49Looking ahead, we are poised to return 100 percent of bankruptcy claim amounts plus interest

00:55for non-governmental creditors through what will be the largest and most complex bankruptcy

01:00estate distribution in history.

01:02Fortunately for customers and creditors, FTX had a lot of assets to sell during the bankruptcy

01:07process.

01:08The company collected between $14.7 billion and $16.5 billion worth of assets, which more

01:14than covered the $11.2 billion owed to creditors.

01:19One thing working in FTX's favor, Bitcoin.

01:23The hoard of Bitcoin it held surged 260 percent in value since the scandal broke in 2022.

01:30FTX was able to sell that at a profit.

01:33The other payday came from its stake in artificial intelligence.

01:37FTX sold off its investment in Anthropic, an AI startup, for nearly $900 million.

01:45The architect behind the fraud scheme is currently serving a 25-year prison sentence.

01:51That will do it for your daily briefing from the New York Stock Exchange.

01:53I'm Conway Gittins with The Street.