FTX Presents Revised Plan to Distribute Billions to Customers and Creditors, Initiating Final Phase of Bankruptcy Resolution
Now-defunct crypto exchange FTX has revealed its latest proposal aimed at returning billions of dollars to customers and creditors, marking the start of the final stage in resolving its bankruptcy case.
While the proposal addresses several critical aspects, there are still unanswered questions that remain, such as whether FTX will revive its defunct crypto exchange, the methodology for valuing certain digital tokens, and the anticipated returns for creditors, Bloomberg reported Monday .
The plan is scheduled to be presented to creditors for a vote next year, with the likelihood of incorporating additional key details, before it ultimately undergoes final approval from US Bankruptcy Judge John Dorsey.
It is important to note that the primary creditor and customer groups involved in the Chapter 11 case have already reached a consensus on the broad framework of the plan.
Under the proposed payout plan, billions of dollars will be distributed in the form of cash following the liquidation of a substantial portion of the firm’s cryptocurrencies.
As reported , in a recent court filing at the United States Bankruptcy Court for the District of Delaware, the debtors proposed that any customer claim seeking compensation from the exchange should be based on the asset’s value as of November 11, 2022.
According to the plan, the value of each claim will be determined by converting the crypto assets into cash using conversion rates specified in a conversion table.
Cryptocurrency prices have risen significantly since the bankruptcy filing.
Bitcoin, for example, was valued at $17,036 during the filing but has since surged to $42,272 at the time of publication.
Last month, FTX founder Sam Bankman-Fried was found guilty of
