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A New Proposed Settlement From FTX
FTX, the embattled cryptocurrency exchange, has unveiled a proposal to reimburse creditors with more than 90% of their funds. The announcement signals a pivotal step forward in the bankruptcy case, with the proposal set for submission to the U.S. Bankruptcy Court for final approval in December.
John. J. Ray III, FTX CEO, and the chief restructuring officer hailed the proposed settlement as a significant milestone in the case, emphasizing the value created from what could have been a dire financial catastrophe for customers. The proposal outlines the division of missing customer assets into three pools based on the circumstances at the onset of the Chapter 11 cases.
Facets of the Proposal
Under the proposal, customers with a preference settlement amount of less than $250,000 can accept the settlement without any reduction of claim or payment. The release highlighted the creation of a "General Pool" for other assets and emphasized the estimated values of the shortfall claim, standing at $8.9 billion for FTX.com and $166 million for FTX US.
FTX anticipates disbursing these funds by the end of the second quarter of 2024, pending bankruptcy court approval. The proposal represents a strategic move by FTX to address the concerns of its customers and resolve the complexities surrounding the case.