Question about upcoming FTX refund

I read that the court will soon approve the FTX customer refund scheme, and within 60 of the court’s approval the FTX customers should get up to 118% precent of their investments. Does anyone know if that refund will be in the form of fiat or the original crypto? If the refund is in the form of fiat, does that mean that the custodians have been selling off the crypto assets or perhaps converting it to stable coin? How else could they guarantee to have enough funds to make such guarantees? Thanks