FTX Unveils Final Bid For Customer Funds In Billion-Dollar Bankruptcy

Key Points:

FTX unveils final bid for customer customers and creditors as part of their bankruptcy case resolution.
The plan will be sent to creditors for a vote next year before final approval from US Bankruptcy Judge John Dorsey, with cash distribution following the liquidation of the firm’s cryptocurrencies.

According to BBG, FTX unveils final bid for customer and creditors as part of its bankruptcy case. Key questions remain unanswered. Founder Sam Bankman-Fried relinquished control after conviction for fraud.

FTX has presented its latest proposal to return billions of dollars to customers and creditors, marking the beginning of the final stage in resolving the bankruptcy case of the fraudulent crypto firm.

The reorganization plan, however, still leaves several crucial questions unanswered, such as whether FTX will relaunch its defunct crypto exchange, how the company will determine the value of certain digital tokens, and the expected amount of compensation for creditors.

The plan is expected to be sent to creditors for a vote next year, potentially with additional details, before it reaches US Bankruptcy Judge John Dorsey for final approval.

FTX Unveils Final Bid for Customer and Creditors

The main creditor and customer groups involved in the Chapter 11 case have agreed to the general framework of the plan. Under the proposed payout plan, cash distribution will be made after a significant portion of the firm’s cryptocurrencies have been liquidated.

FTX founder Sam Bankman-Fried, who was recently convicted of orchestrating a massive fraud resulting in the collapse of his FTX exchange, relinquished control of his empire to restructuring professionals, leading to the company’s bankruptcy filing last year.

Since then, the advisers have been identifying assets and resolving a complex web of debt owed to various creditors, including customers who had funds and cryptocurrencies on the trading platform.

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Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.