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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