FTX proposes measures to return money to clients
Cryptocurrency platform FTX, embroiled in lawsuits, prison sentences and accusations from creditors, seeks a reorganization to return money to its clients
FTX, the cryptocurrency platform under scrutiny by the laws in the United States, proposed in court a restructuring of the company to return money to customers and also end the bankruptcy process.
As you may remember, FTX CEO Sam Bankman-Fried is in prison after being found guilty last November for one of the largest cryptocurrency financial frauds in the United States.
Previously, the platform had declared bankruptcy and initiated the relevant process before the authorities. However, the accusations against the CEO determined the theft of billions of dollars from FTX clients.
Creditor claims, so far, are estimated at USD 9 billion. In this regard, FTX is seeking an agreement with the court to stop the bankruptcy process by returning the funds. However, if it receives approval for this plan, “it means that creditors could lose millions in potential profits from settlement in fiat currency. Some creditors have pointed out that such a proposal would go against FTX’s Terms of Service, which stated that titles to digital assets belonged to clients and not to the exchange,” according to one of the reports.
This proposal must obtain the approval of creditors by vote, in addition to the court. According to the CoinDesk source, a hearing will be set in 2024. Furthermore, The Block notes that “several approval thresholds in both dollar amount and number of claimants are required for the plan to take effect.”
M.Pino
Source: diariobitcoin
(Reference image source: Mariia Shalabaieva, Unsplash)
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