FTX Seeks Customer Consensus: Multi-Billion Dollar Compensation Plan Goes To Vote
26 Giugno 2024 - 4:00AM
NEWSBTC
FTX, the failed crypto exchange, will seek customer approval for
its Chapter 11 plan to compensate victims and resolve government
penalties stemming from the platform’s fraudulent collapse in
November 2022. The decision by Judge John Dorsey marks a
significant step forward in the two-year-long bankruptcy
proceedings, as voting by creditors plays a pivotal role in
restructuring efforts. While FTX’s plan has gained support from key
customer committees, a vocal group remains opposed and demands
substantial revisions. FTX Offers Customers 119% Asset Recovery
According to Bloomberg, under the proposed plan, most FTX customers
are expected to recover 119% of their assets as of the day the
company filed for Chapter 11 in November 2022. Other creditors may
receive up to 143% of their owed amounts. FTX’s legal team
maintains that bankruptcy law necessitates valuing claims based on
their value at the time of filing, despite subsequent increases in
cryptocurrency prices. Related Reading: Bitwise CIO Bullish On Spot
Ethereum ETFs: Envisions $15 Billion Inflows FTX’s decision to
solicit votes from its customer base stems from the desire to
obtain feedback from previously uninvolved parties regarding the
repayment plan. Additionally, the company is still
negotiating with federal authorities and exploring options to
utilize government claims against FTX to compensate affected
customers. Notably, FTX has already settled a $24 billion tax
claim from the US Internal Revenue Service. Under the settlement
terms, the firm will pay the IRS $200 million within 60 days of
implementing the proposed restructuring plan. The settlement
allows FTX to pay a fraction of the amount claimed by the IRS,
clearing the way for the exchange to distribute significant
customer recoveries. The IRS will also receive a lower priority
claim of $685 million, which will be paid on a subordinated basis
to customers and other creditors, depending on the availability of
funds. These details were outlined in a filing made by FTX in the
US Bankruptcy Court for the District of Delaware. SBF’s Fraud
Conviction Shadows Bankruptcy Proceedings FTX is currently
monetizing its assets, as the platform reportedly lacked segregated
digital assets directly connected to claims against the exchange.
Instead, FTX possesses a collection of assets acquired using stolen
customer funds, representing a complex challenge in the
compensation process. Customers have until August 16 to vote on the
Chapter 11 plan. Judge Dorsey will then review and potentially
approve the plan on October 7, considering the outcome of the
customer vote. Related Reading: Crypto Research Firm Says Bitcoin
Crash Below $60,000 May Not Be The End, Here’s Why FTX filed for
bankruptcy after its founder, Sam Bankman-Fried (SBF), shut down
the crypto trading platform in 2022 and relinquished control to
bankruptcy professionals. Bankman-Fried subsequently faced a
25-year fraud conviction, which he recently announced he would
appeal. As of this writing, the exchange’s native token FTT is
trading at $1.43, up 2% in the past 24 hours and just 27%
year-to-date. Featured image from DALL-E, chart from
TradingView.com
Grafico Azioni Flow (COIN:FLOWUSD)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Flow (COIN:FLOWUSD)
Storico
Da Giu 2023 a Giu 2024