FTX Team Unveils Revised Restructuring Plan with Key Details Still Pending

FTX Team Unveils Revised Restructuring Plan with Key Details Still Pending

FTX Team Unveils Revised Restructuring Plan with Key Details Still Pending

According to Bloomberg, FTX Trading Ltd., a cryptocurrency exchange, announced its latest proposal last Saturday (16th) to return billions of dollars in assets to customers and creditors, marking the final potential dispute on how to best conclude the bankruptcy case of this fraud-affected cryptocurrency company.

There are still some crucial questions unanswered in the restructuring plan, including whether FTX will restart its trading platform, how the company will estimate the value of certain digital tokens, and how much money creditors can expect to recover.

The plan will be submitted to creditors for voting next year (possibly with additional key details) and then submitted to US Bankruptcy Court Judge John Dorsey for final approval. The major creditors and client groups involved in the bankruptcy protection case have agreed to the general framework of the plan, which requires the distribution of billions of dollars in cash after liquidating most of the company’s cryptocurrencies.

The FTX Unsecured Creditors Committee stated on the X platform that the revised restructuring plan and accompanying disclosure statement submitted by FTX debtors will be further revised based on the opinions of the committee and other stakeholders regarding events and agreements that occur between now and the hearing date for approval of the disclosure statement. The goal is to maximize the recovery rate of FTX unsecured creditors and expedite the distribution.