FTX has submitted a new restructuring plan to return billions of dollars to creditors.
Cryptocurrency exchange FTX Trading Ltd. has submitted its latest restructuring plan, which aims to return billions of dollars to its customers and creditors. This marks the beginning of the final round of arguments in the company's bankruptcy case. The restructuring plan leaves some questions unanswered, including whether FTX will reopen its exchange, how the value of digital tokens will be assessed, and how much creditors will be able to recover. The plan is scheduled to be voted on by creditors next year and then ultimately approved by a US bankruptcy judge. The founder of FTX has been convicted of fraud, leading to the collapse of the company.
Zhitong App has learned that cryptocurrency exchange FTX submitted its latest restructuring plan on December 16th, local time, which includes returning billions of dollars to customers and creditors, thus initiating the final round of potential debates on how best to end the bankruptcy case of this fraud-affected cryptocurrency company.
The restructuring plan leaves some of the most important questions unanswered, including whether FTX will restart its closed cryptocurrency exchange, how the company will estimate the value of certain digital tokens, and how much creditors can expect to recover.
Next year, the plan will be submitted to creditors for voting - potentially adding some key details - and then handed over to US bankruptcy judge John Dorsey for final approval. Major creditor and client groups involved in Chapter 11 bankruptcy have agreed to the general framework of the plan.
The payment plan calls for the distribution of billions of dollars in cash after the liquidation of most of the company's cryptocurrencies.
Last month, FTX founder Sam Bankman-Fried (SBF) was found guilty of orchestrating a large-scale fraud that led to the collapse of his FTX exchange. SBF was convicted on seven counts last month and could face up to 110 years in prison.
After SBF agreed to transfer control of his company to restructuring professionals, the company filed for bankruptcy last year. Since then, advisors have been tracking assets and trying to untangle the complex web of debts owed to various creditors, including customers who invested cash and cryptocurrencies on the trading platform.