In a major development for those affected, it was announced that customers of the FTX exchange, which filed for bankruptcy, could see more than 90 % of their assets returned by the end of the second quarter of 2024. This has been achieved through a proposed agreement between FTX’s creditors and debtors.

On October 17, FTX debtors announced they had reached an “important milestone” in their Chapter 11 case after extensive discussions with unsecured creditor committees, non-U.S. customer committees, and class action plaintiffs regarding disputes. owned by customers.

The proposed deal was filed with a U.S. bankruptcy court based in Delaware on October 16 (for informational purposes), but an official filing is expected before December 16 to seek court approval.

Part of the modified plan includes the “Deficit Claim,” in which it is estimated that FTX.com and FTX US clients would collectively receive 90 % of the assets available for distribution. The Deficit Claim is estimated to be approximately $8.9 billion for FTX.com and $166 million for FTX US. If approved by the Bankruptcy Court, these funds are expected to be distributed before the end of the second quarter of 2024.

FTX CEO and Chief Restructuring Officer, John. J. Ray III, was pleased with the terms of the settlement, stating that “together, beginning in the most challenging financial disaster I have ever seen, the debtors and their creditors have created immense value from a situation that could easily have been an almost total loss for customers.”

The modified plan involves dividing assets into three pools: segregated assets for the benefit of FTX.com clients, US clients, and a general pool of other assets. However, only the first two groups are included in the Deficit Claim.

Despite this positive development, FTX debtors warn that clients of both exchanges will likely not receive full payment, and FTX.com could experience a higher percentage of losses.

K. Tovar

Source: Cointelegraph

(Referential image source: Jonathan Borba, Unsplash)

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La entrada FTX clients would recover almost all their funds in 2024 apareció primero en Bitfinance.

In a landmark decision issued on September 13, Judge John Dorsey of the Delaware Bankruptcy Court gave the green light to the sale of FTX’s digital assets. The original order underwent significant changes the day before the hearing, marking a milestone in the company’s bankruptcy process.

According to the resolution, FTX is authorized to carry out the sale of its digital assets, except Bitcoin (BTC), Ether (ETH) and “certain tokens linked to insiders”, in weekly batches through an advisor of investments, following strict pre-established guidelines.

Initial limits for the first week will be $50 million, increasing to $100 million in subsequent weeks. If these limits are sought to be exceeded, written approval of both the creditors committee and the Ad Hoc Committee will be required, or court approval to reach a weekly limit of $200 million.

On the other hand, the sale of Bitcoin, Ether and tokens linked to insiders will require a separate decision from FTX, with ten days’ notice of its intention required to both the relevant committees and the US trustee, appointed by the Department of Justice.

This court decision marks an important step in FTX’s restructuring process, and its impact on the cryptocurrency world will be closely followed by the global financial community.

K. Tovar

Source: Cointelegraph

(Referential image source: Jonathan Borba, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Delaware bankruptcy court approved FTX digital assets sale apareció primero en Bitfinance.